Announcement PDF resourcing the new economy for a better tomorrow 29 July 2024 HIGH-GRADE DRILLING RESULTS CONFIRM MAIN MINERALISED LEVEL AT MT CARBINE EQ Resources Ltd is a global tungsten producer with mining activities in Australia and Spain. Highlights: • Completed a further 37 holes of Infill RC Drilling at 10m spacing into the Main Vein Packages at Mt Carbine, totaling 1,437m of drilling • High-grade drilling results confirm the main mineralised level of the deposit is being intersected starting at 295-305m RL • Drilling of the main ore zone revealed several high-grade intersections*, including: • - 8m @ 1.33% WO3 - MCM 241 from 14m - 4m @ 2.33% WO3 - MCM 241 from 27m - 13m @ 0.88% WO3 - MCM 256 from 38m - 7m @ 1.23% WO3 - MCM 259 from 20m - 5m @ 1.44% WO3 - MCM 261 from 6m - 7m @ 0.81% WO3 - MCM 263 from 28m - 9m @ 1.73% WO3 - MCM 269 from 25m - 9m @ 0.61% WO3 - MCM 272 from 8m - 7m @ 0.71% WO3 - MCM 272 from 44m Individual veins with true widths ranging from 0.3m to 3.0m were intersected, with grades ranging from 0.5% to 7.67% WO3 *Intervals are down hole intercepts sampled at 1m intervals and then composited. EQ Resources Limited (“EQR” or “the Company”) is pleased to announce the results of a further 37 Infill Reverse Circulation Drill holes (“RC” holes), totaling 1,437m of drilling and targeting the main benches of the Andy White Open Pit. Drilling from the current pit floor at the 295-305m level reveals four main zones of mineralization, covering a 100m strike and 80m width (see Figure 1 and 2). This section is part of the main vein system, known to extend for 1.2km along strike with substantial width. Parallel and to the north lies the Iron Duke Vein system, similar in scale but currently defined only at the inferred resource level. Both vein systems extend an additional 80m below the planned Pit II depth of 250m RL. Further evaluations will be conducted to assess deeper extensions. EQR’s CEO, Kevin MacNeill, commented: "The main ore body level at the Iolanthe-Bluff-Wayback-Johnson vein system shows outstanding results. Although mining will commence next year on most of these benches, it is pleasing to see that the excellent infill results align well with our Pit II design. The consistency of these veins confirmed in this round of drilling provide us very promising targets for underground vein mining, and the extensions of these zones to the west will constitute a substantial part of our underground ore body." 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 RC DRILL HOLE SUMMARY (SIGNIFICANT RESULTS) Hole Vein From (m) To (m) MCM 238 South Johnson 20 21 MCM 239 South Johnson 24 28 MCM 240 South Johnson 4 5 South Johnson 14 22 South Johnson 27 31 MCM 242 South Johnson 7 10 MCM 242 South Johnson 18 21 MCM 245 Wayback 21 23 MCM 241 Wayback 0 4 Wayback 13 15 MCM 248 Wayback 5 8 MCM 248 Wayback 15 16 MCM 249 Wayback 14 15 MCM 251 South Johnson 0 10 MCM 252 South Johnson 32 33 MCM 255 Wayback 20 26 MCM 255 Wayback 42 44 Bluff 16 23 Bluff 38 51 Bluff 20 22 Bluff 27 29 Bluff 36 38 Bluff 43 45 MCM 259 Bluff 20 27 MCM 260 Wayback 23 27 MCM 261 Wayback 6 11 MCM 262 Wayback 22 25 MCM 262 Wayback 33 40 MCM 263 Bluff 15 17 MCM 263 Bluff 28 35 MCM 264 Bluff 45 46 MCM 266 Wayback 19 20 MCM 268 Bluff 13 15 MCM 269 Iolanthe 10 13 MCM 269 Iolanthe 25 34 MCM 270 Iolanthe 34 37 MCM 271 Bluff 10 12 Bluff 8 17 Iolanthe 44 51 MCM 247 MCM 256 MCM 258 MCM 272 Interval (m) Grade (WO3%) 1 4 1 8 4 3 3 2 4 2 3 1 1 10 1 6 2 7 13 2 2 2 2 7 4 5 3 7 2 7 1 1 2 3 9 3 2 9 7 0.67 0.51 0.88 1.31 2.32 1.26 0.83 0.55 1.14 1.88 1.32 0.97 0.80 0.54 0.62 0.87 0.85 0.83 0.88 1.51 0.73 0.61 1.36 1.23 1.41 1.44 1.64 0.64 0.51 0.81 1.15 0.56 1.04 0.87 1.73 0.59 0.79 0.61 0.71 Table 1 - Significant Zones of Mineralisation (see individual hole details in Appendix 1) Page 2 resourcing the new economy for a better tomorrow Figure 1 - Orthomosaic Image of Pit I Floor showing Drill Locations for 37 Holes reported in this announcement 4m @ 2.33% WO3 8m @ 1.33% WO3 5m @ 1.44% WO3 7m @ 1.23% WO3 7m @ 0.81% WO3 13m @ 0.88% WO3 9m @ 0.61% WO3 7m @ 0.71% WO3 9m @ 1.73% WO3 Figure 2 - Insert of the recent drill holes on the 295m bench showing the pit floor and significant intercepts Page 3 resourcing the new economy for a better tomorrow This drilling aimed to target the zone below the current mine level of 295m RL in the main pit area. The detailed examination of this primary ore body has provided the Company with increased confidence in future mining plans. Remarkably, in this program with 10m spacing, only one out of 37 holes failed to yield significant results. Figure 3 - Shows Isometric View of Current Pit 1 in grey, relative to the recent drilling below with high-grade (>0.5% WO3) shown in red This drilling program builds on the good results so far from the Company’s 2024 Drilling Campaign (see ASX announcement ‘Mt Carbine Infill Drilling Reveals Additional High-Grade Ore In Stage II Waste Cutback Area’ dated 3 June 2024, and ASX announcement ‘Mt Carbine Infill Drilling Reveals High-Grade Zones In Stage II Pit’ dated 30 April 2024). Figure 4 - Block Model showing main high-grade vein packages relative to Pit I (in blue, currently mined) & II (in grey, next stage mine plan) 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 Page 4 resourcing the new economy for a better tomorrow 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 mineralisation 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 exploration results are based on, and fairly represents, information compiled by Mr. Bainbridge. 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 5 resourcing the new economy for a better tomorrow Appendix 1 – Individual Assay Results - Note for grade control RC sampling the Company is using its own calibrated internal laboratory set up with a Thermo Scientific ARL Quant'X X-Ray Fluorescence Spectrometer that has been calibrated with official standards and has a 10% external QAQC program being applied to all assays. This machine however is not from a NATA accredited lab. See attached Table 1 from the JORC Code for full information on processing and QAQC details. - Intervals in table represent downhole depth, not true thickness with no applied upper cut. The highlight (bold) intervals represent where King-Veins have intersected above 1% WO3 grade. It should be noted drilling was completed at 70 degree dip and a high angle to the vein systems. Hole # East North RL EOH Dip Azm MCM 237 22,890 26,340 296.5 33.0 65 180 MCM 238 22,880 26,340 296.4 33.0 65 180 MCM 239 22,870 26,339 296.7 33.0 65 180 MCM 240 MCM 241 MCM 242 MCM 243 MCM 244 MCM 245 22,860 22,860 22,870 22,880 22,890 22,880 26,340 26,341 26,340 26,341 26,341 26,330 296.5 296.4 296.8 296.5 296.5 296.4 33.0 33.0 33.0 33.0 33.0 33.0 65 65 180 0 65 0 65 0 65 65 0 180 From 2 8 9 28 20 24 25 26 27 4 28 29 30 14 15 16 17 18 19 20 21 27 28 29 30 0 7 8 9 18 19 20 0 1 2 15 16 17 18 19 20 31 8 9 10 To WO3% Interval 3 0.16 1 9 0.58 10 0.14 2 29 0.13 1 21 0.67 1 25 0.89 26 0.80 27 0.13 28 0.20 4 5 0.88 1 29 0.19 30 0.37 31 0.13 3 15 0.13 16 2.97 17 1.53 18 0.86 19 3.76 4 20 0.73 21 0.12 22 0.38 8 28 6.27 29 0.46 30 2.40 31 0.15 4 1 0.35 1 8 3.31 9 0.18 10 0.30 3 19 1.52 20 0.73 21 0.25 3 No Significant Results 1 0.60 2 0.11 3 0.37 3 16 0.41 17 0.19 18 0.06 19 0.02 20 0.72 21 0.17 6 32 0.11 1 9 0.46 10 0.90 11 0.23 WO3 % 0.16 0.36 0.13 0.67 0.51 0.88 0.23 2.28 1.31 2.32 0.35 1.26 0.83 0.36 0.26 0.11 Page 6 resourcing the new economy for a better tomorrow MCM 246 MCM 247 MCM 248 22,888 22,870 22,860 26,329 26,330 26,330 296.7 296.1 296.0 33.0 33.0 33.0 65 65 65 180 180 180 MCM 249 22,850 26,330 295.6 33.0 65 180 MCM 250 22,841 26,329 295.5 33.0 65 180 MCM 251 22,840 26,340 295.2 33.0 65 0 MCM 252 MCM 253 MCM 254 MCM 255 22,850 22,850 22,840 22,899 26,341 26,340 26,339 26,341 295.3 295.4 295.3 296.9 33.0 33.0 33.0 51.0 65 65 65 65 0 180 180 180 11 21 22 10 24 25 26 0 1 2 3 13 14 1 5 6 7 15 14 0 24 32 0 1 2 3 4 5 6 7 8 9 29 32 3 4 9 10 29 30 2 3 14 21 0 1 20 21 22 23 24 25 34 42 43 12 22 23 11 25 26 27 1 2 3 4 14 15 2 6 7 8 16 15 1 25 33 1 2 3 4 5 6 7 8 9 10 30 33 4 5 10 11 30 31 3 4 15 22 1 2 21 22 23 24 25 26 35 43 44 0.16 0.91 0.18 0.33 1.39 0.24 0.24 0.30 3.52 0.62 0.13 2.85 0.90 0.10 2.13 1.61 0.22 0.97 0.80 0.11 0.18 0.33 0.60 3.40 0.72 0.09 0.01 0.01 0.01 0.21 0.15 0.17 0.43 0.62 0.31 0.22 0.22 0.76 0.83 0.10 0.65 0.15 0.18 0.15 0.36 0.14 1.18 2.15 0.63 0.24 0.71 0.31 0.37 1.50 0.20 4 0.43 2 1 0.55 0.33 3 4 1.14 2 1 1.88 0.10 3 1 1 1 1 1 1.32 0.97 0.80 0.11 0.18 0.33 10.00 1.00 1.00 0.54 0.43 0.62 2.00 0.26 2.00 0.49 2.00 0.46 2.00 1.00 1.00 0.40 0.18 0.15 2.00 0.25 6.00 1.00 0.87 0.37 2.00 0.85 Page 7 resourcing the new economy for a better tomorrow MCM 256 MCM 257 MCM 258 MCM 259 22,870 22,861 22,850 22,841 26,320 26,319 26,319 26,321 295.9 296.3 295.8 295.5 51.0 51.0 51.0 51.0 65 65 65 65 180 180 180 180 0 5 9 10 11 16 17 18 19 20 21 22 38 39 40 41 42 43 44 45 46 47 48 49 50 3 7 8 9 13 14 15 16 17 18 24 44 45 46 47 48 49 0 17 20 21 27 28 36 37 39 43 44 4 20 1 6 10 11 12 17 18 19 20 21 22 23 39 40 41 42 43 44 45 46 47 48 49 50 51 4 8 9 10 14 15 16 17 18 19 25 45 46 47 48 49 50 1 18 21 22 28 29 37 38 40 44 45 5 21 0.13 0.19 0.52 0.10 0.10 0.59 1.85 0.14 0.06 2.46 0.51 0.23 2.55 3.05 1.25 0.93 0.67 0.49 0.47 0.70 0.34 0.18 0.11 0.56 0.15 0.21 0.15 0.08 0.11 0.40 0.24 0.15 0.05 0.90 0.33 0.23 0.14 0.66 0.23 0.09 1.07 0.51 0.13 0.12 0.11 2.91 1.24 0.23 1.02 0.21 0.07 2.59 0.13 0.42 1.99 1.00 1.00 0.13 0.19 3.00 0.24 7.00 0.83 3.00 2.28 13.00 1.00 0.88 0.21 3.00 0.11 6.00 1.00 0.34 0.23 6.00 1.00 1.00 0.45 0.13 0.12 2.00 1.51 2.00 0.73 2.00 1.00 0.61 0.13 2.00 1.00 1.36 0.42 Page 8 resourcing the new economy for a better tomorrow MCM 260 MCM 261 MCM 262 MCM 263 MCM 264 MCM 265 22,831 22,831 22,896 22,889 22,881 22,830 26,339 26,340 26,341 26,322 26,321 26,330 295.3 295.3 296.8 296.4 296.4 295.5 51.0 33.0 51.0 51.0 51.0 33.0 65 65 65 65 65 65 180 0 180 180 180 180 21 22 23 24 25 26 0 1 2 23 24 25 26 0 1 2 6 7 8 9 10 22 23 24 33 34 35 36 37 38 39 15 16 28 29 30 31 32 33 34 37 50 21 22 23 24 25 26 27 28 45 49 50 0 18 22 23 24 25 26 27 1 2 3 24 25 26 27 1 2 3 7 8 9 10 11 23 24 25 34 35 36 37 38 39 40 16 17 29 30 31 32 33 34 35 38 51 22 23 24 25 26 27 28 29 46 50 51 1 19 1.31 0.23 0.12 3.93 0.82 0.20 0.31 0.10 0.11 2.20 2.20 0.76 0.47 0.17 0.66 0.18 1.72 3.82 0.73 0.71 0.20 3.72 1.07 0.13 2.67 0.74 0.19 0.49 0.17 0.10 0.15 0.78 0.24 3.38 1.34 0.25 0.13 0.10 0.29 0.19 0.19 0.21 0.98 0.16 0.05 0.01 0.04 0.85 0.25 0.07 1.15 0.13 0.05 0.20 0.12 7.00 1.23 3.00 0.17 4 1.41 3 0.34 5 1.44 3.00 1.64 7.00 0.64 2 0.51 3.00 1.66 5.00 1.00 1.00 0.81 0.19 0.21 7.00 1.00 0.35 1.15 3.00 1.00 0.38 0.12 Page 9 resourcing the new economy for a better tomorrow MCM 266 22,821 26,331 295.5 33.0 65 180 MCM 267 22,811 26,332 295.1 33.0 65 180 MCM 268 22,828 26,312 305.0 33.0 65 180 MCM 269 MCM 270 22,831 22,811 26,300 26,292 304.8 305.6 51.0 51.0 65 65 180 180 MCM 271 22,811 26,311 304.7 33.0 65 180 MCM 272 22,821 26,310 305.1 51.0 65 180 25 26 27 28 29 30 0 12 19 9 1 2 3 4 5 6 7 13 14 18 26 27 28 10 11 12 25 26 27 28 29 30 31 32 33 43 44 45 46 6 7 8 9 10 11 34 35 36 10 11 0 8 9 10 11 26 27 28 29 30 31 1 13 20 10 2 3 4 5 6 7 8 14 15 19 27 28 29 11 12 13 26 27 28 29 30 31 32 33 34 44 45 46 47 7 8 9 10 11 12 35 36 37 11 12 1 9 10 11 12 0.13 0.07 1.37 0.27 0.10 0.11 0.34 0.14 0.56 0.48 0.30 1.66 0.31 0.20 0.06 0.23 0.11 0.83 0.21 0.28 0.12 0.56 0.11 1.53 0.87 0.21 0.22 0.12 0.62 0.03 7.67 3.68 2.37 0.54 0.35 0.19 0.03 0.11 0.22 0.61 0.13 0.04 0.16 0.08 0.11 1.29 0.39 0.10 0.47 1.10 0.19 2.34 0.36 0.20 0.04 6.00 1.00 1.00 1.00 1.00 0.34 0.34 0.14 0.56 0.48 7.00 0.41 2.00 1.00 1.04 0.28 3.00 0.26 3.00 0.87 3.00 4.57 9.00 1.73 4.00 0.14 6.00 0.19 3.00 0.59 2.00 1.00 0.79 0.19 Page 10 resourcing the new economy for a better tomorrow MCM 273 22,812 26,298 305.2 33.0 65 180 12 13 14 15 16 22 29 44 45 46 47 48 49 50 0 20 13 14 15 16 17 23 30 45 46 47 48 49 50 51 1 21 0.01 1.23 0.12 0.96 0.24 0.41 0.10 1.37 1.13 1.27 0.54 0.31 0.17 0.20 0.11 0.14 9.00 1.00 1.00 0.61 0.41 0.10 7.00 1.00 1.00 0.71 0.11 0.14 Page 11 resourcing the new economy for a better tomorrow JORC Table 1 – Exploration Results Section 1 - Sampling Techniques and Data Criteria Sampling techniques Drilling techniques Drill sample recovery Logging Explanation Commentary Nature and quality of sampling (e.g. 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. 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 (e.g. ‘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 (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. 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. 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. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged. Sampling was taken from a cyclone mounted on the side of the RC rig which provides a continuous split as the sample is taken. The sample locations were marked out using DGPS locator staff and sampling was taken as channel continuous sample of outcrop. The samples each represent 1m of drilling and generally weigh 5 kg of material that is P90 of –5mm. Between samples the hole is flushed with air between samples to avoid contamination between zones. A sieve is used to fill a sample tray with each trip tray box representing 1m. These chip trays are used to log the hole and are examined under blue light to see the presence of scheelite. The entire sample size is split down to 500gm charge which is then pulverized to 75 micron before 200gm is split into making up the representative sample. Reverse Circulation Drilling. The samples were recorded on the maps and also on the digital survey instrument (Texas DGPS). There does not appear to be any link between sample recovery and grade. Mapping occurred on floor bench outcrop and was mapped for alteration, geology, mineralisation and structure. The veins shown were measured for strike and continuity. Page 12 resourcing the new economy for a better tomorrow Criteria Explanation Commentary If core, whether cut or sawn and whether The 5kg samples were crushed in Jaw initially and split at <5mm to get down to 1kg. Finer crushing then occurred until we could achieve a representative 500gm sample. This was pulverized in LM2 grinder and a subset of 200mesh powder of 200gm was split off. Approximately 10grams of this fine powder was then taken for assay internally using our own XRF analysis machine using full QAQC protocols. Sub-sampling quarter, half or all core taken. techniques and If non-core, whether riffled, tube sampled, sample rotary split, etc. and whether sampled wet preparation or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. 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. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the Quality of assaying and laboratory procedures used assay data and and whether the technique is considered laboratory tests partial or total. 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. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The verification of significant intersections by Verification of either independent or alternative company sampling and personnel. assaying The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Data spacing Results. and distribution Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Location of data points The sample assay was taken with 10% of the samples in the batch were standards with known tungsten / Arsenic values. A further 10% blanks was inserted to ensure there was no carryover of sample nor any variance in the drift curve for the Thermofisher XRF machine. Sampling was undertaken by Site Geological Team under the supervision of Tony Bainbridge chief geologists who has 42 years of experience in mining and exploration. The samples and methodology for these samples was also supervised by Tony Bainbridge as QP for the Mt Carbine Project. It can be verified the custody of the sample and that all QAQC was checked before these results have been reported here. The samples collected are representative and our QAQC sampling in comparison to ALS laboratories in Brisbane Australia resides with 2% of their results during checks. A calibration curve is regularly checked for consistency in our XRF machine. RC hole locations are shown in Figure 3 and detailed in Appendix 1. Spacing is considered sufficient to establish geological and grade continuity. No composites were used. Page 13 resourcing the new economy for a better tomorrow Criteria Orientation of data in relation to geological structure Sample security Audits or reviews Explanation Commentary Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security. All RC Holes are taken at a 65-70 degree dip with both dip and direction surveyed accurately. The veining in the pit is dominantly vertical and the high angle to the veins needs to be calculated in the estimations of zones. The results of any audits or reviews of sampling techniques and data. No audit of the sampling has as yet been undertaken and it is planned to drill shallow percussion holes to validate this trench result. The sample is taken to the Company’s internal laboratory on the same day as taken. The lab has a perimeter fence and secured during the night. Section 2 - Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Mineral tenement and land tenure status Exploration done by other parties Geology Explanation Commentary Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Acknowledgment and appraisal of exploration by other parties. The resource estimates reported herein are all within Mining Leases 4867 (358.5ha, expiry 31-07-2048) and 4919 (7.891ha, expiry 31-08-2049), held by Mt Carbine Quarries Pty Ltd. The Mining Leases lie within Brooklyn Grazing Homestead Perpetual Lease. Native Title has been extinguished in the Mining Leases by Deed of Grant. No previous examination of these results have been reported. Historical (1974-1987) mine records: A nearly complete record of mine production, including amounts of mined rock consigned to the LGS has been compiled using published and unpublished archives, including reporting for State Royalty returns. Deposit type, geological setting and style of mineralisation. The Deposit The Mt Carbine tungsten deposit is a sheeted quartz vein deposit. Many sub-parallel, sub-vertical quartz veins have been deposited in fractures developed in the host rocks metasediments in a zone that drilling and mapping of historical surface workings have shown to be approximately 300m wide and at least 1.4km long, trending at about 315 degrees. Grade Variation Sampling, drill core logging, geostatistical analysis of drill core assay data and mapping of the open pit have determined that all the material mined during the previous operation was mineralised to some Page 14 resourcing the new economy for a better tomorrow Criteria Explanation Commentary extent and that the mineralogy of the deposit was uniform. There is little doubt that the mineralogy of the stockpile material is identical to that mined and processed. The material in the stockpile comprises a single formation, the result of the alteration of Siluro-Devonian meta-sedimentary host rocks (Forsythe and Higgins, 1990). The amount of quartz veining varies within the mineralised zone and previous mining and exploration have been concentrated at the southeastern end of the mineralised zone. It is well understood that there are high-grade zones within the mineralisation in this part of the deposit and that the higher-grade zones are surrounded by lower grade mineralisation. Interpretation of recent drilling suggests that the main high-grade zone may plunge to the north of the present open pit. The previous mine assumption that quartz vein abundance is directly correlated with grade is not supported by an independent review of quartz vein abundance and grade. Drill hole Information Data aggregation methods A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated See Appendix 1. The samples have been composited on a weighted average for the distance of each sample. No cut off grades were used. Page 15 resourcing the new economy for a better tomorrow Criteria Explanation Commentary Relationship important in the reporting of between Exploration Results. mineralisation If the geometry of the mineralisation with widths and respect to the drill hole angle is intercept length These relationships are particularly As the drilling is mainly at 65 degrees and the veins intersected are dominantly vertical it is necessary that the reader of such results understand they are not true widths reported but rather downhole intercepts which are taken into account in the modelling and resource reporting information provided. Diagrams Sample locations are shown in Figure 3. Balanced reporting Other substantive exploration data Further work known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater,