Announcement PDF EQ RESOURCES LIMITED Annual General Meeting 29th November 2024 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 forward- looking 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 Kevin MacNeill - Chief Executive Officer • Interim CEO & Senior Technical Advisor since May 2019, CEO since January 2020. • 35+ years in mining project development globally. • Expertise in mineral processing, specifically tungsten. • Past President of Etruscan Diamonds, founded Specialized Metallurgical Projects. Oliver Kleinhempel - Non-Executive Chairman • Non-executive Director since August 2019, Chairman since April 2020. • Experience in project development, finance, commodity trading. • Previous roles at Outotec, Ferrostaal Group, CRONIMET. • Executive Director at CRONIMET Group. Richard Morrow - Non-Executive Director Stephen Weir - Non-Executive Director • Appointed in January 2024, representing Oaktree Capital Management. • Experience in corporate advisory, project finance, construction management. • • Over 30 years as a sharebroker, interested in resources sector. • Ex Chairman of Melbourne Mining Club. • Investment roles at Lowell Resources Fund Management • Fellow of AusIMM. Former CEO of Magnetite Mines Ltd, Member of the Australian Institute of Company Directors, GBA Capital Advisory Board. Stephen Layton - Non-Executive Director Zhui Pei Yeo - Non-Executive Director • Background in executive management, project planning, resource management. • Works in system integration in telecoms in South-East Asia. • Executive director at a steel-product manufacturer. • 35+ years in equity capital markets in the UK and Australia. • Experience in ASX listings, corporate advisory. • Directorships at Mithril Resources Limited Andrew Mooney - Chief Financial Officer Tony Bainbridge - Chief Geologist • Focus on Mt Carbine’s ‘King-Vein’ style mineralisation. • Experience in tungsten projects in South Korea and Africa. • Director at Asia Interplay Mining Ltd & AMB Exploration Pty Ltd. • Over 25 years experience in mining and finance sector. • Expertise in capital management, treasury, strategic planning, tax, risk management, and investor relations. • Former Vice President of Investor Relations at Coronado Global Resources Inc. 3 Corporate Overview 2024 - To Date (Share Price Performance & Key Announcements) Key Statistics Share Price A$0.053 per share (20 Nov 2024) Securities on Issue Shares 2.24B / Options 155m Market Capitalisation A$118.6 million Top 20 Shareholders >60% (9% Board/Management) 14 2 1 3 0.09 400 0.08 300 0.06 250 0.05 APT Price USD 350 0.07 Share Price AUD 5 4 2 200 0.04 0.03 150 0.02 Jan-21 100 Jan-22 Share Price Jan-23 Jan-24 APT PRICE (USD) 1 EQR completes Acquisition of Saloro SLU and $25m Placement with Oaktree – Announcement 18 January 2024 (link) 2 Mt Carbine Mine Transitions to Owner-Operator Mining – Announcement 16 August 2024(link) 3 EQR Hits New Production Record as China and US Trade Tension Impact Tungsten Market – Announcement 02 October 2024 (link) 4 Elmet Agreement Executed / Saloro record monthly production – Announcement 12 November 2024 (link) 5 EQR to Acquire 100% interest in Tungsten Metals Group – Announcement 18 November 2024 (link) Source: FastMarkets APT Price Rotterdam (US$/mtu, mtu = 10kg WO3) 4 Health & Safety Performance Pro-active HSE culture through upskilling of employees Safety and Management teams continue to actively working to promote a “Think First”, pro-active safety culture across all EQR’s Operations Take 5's 2023 - 2024 Positive Safety Indicator 1,600 1353 1,400 Pro-active indicators of risk assessments, JSEAs, Take-5, safety permits, drug testing, safety meetings, inspections, pre-starts, etc. continue to be at forefront of Company’s focus. 1,200 888 1,000 800 897 844 791 668 744 476 600 Strong focus on training and upskilling of employees through on-site training and value-add courses. 668 632 528 334 197* 400 200 0 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP *(Dec-23 numbers affected by cyclone Jasper) More Information, see EQ Resources Annual Report 2024 (link) 5 ESG Commitment & Development Highlights Read More on our ESG Commitments: Click 6 EQR Business Update Operations Update • Spain: October record production with recovery rates up to 65-70% (previously 38%). Focus on increasing throughput rates with sorter’s performing well. • Mt Carbine: Accelerated stripping underway to access High Grade ore in Iloanthe vein package. Industry partnerships and relationships driving long term industry growth, vertical integration and margin uplift EQR produces concentrate and supplies to various Asian, European & North American refineries under long term contract terms. • Group target: Maintain Q4CY production levels similar to Q3CY. EQR utilises refineries and supplies tungsten units to Elmet Technologies (US). Funding & Market Outlook • Strong customer demand for EQR products. • Geopolitical concerns on future sources for tungsten and other rare earth materials by western countries increasing. • TMG deal generating significant industry interest with customer offtake and potential funding offers being collected. Elmet Technologies produces high-performance tungsten products for Western supply chains using Western concentrates. EQR & Elmet Technologies agreement opens up funding opportunities from the US Government under the Title 3 Defence Act. Tungsten Metal Group (TMG) Deal opens access to new markets (Ferrotungsten - FeW) Focus: Building momentum in operations, funding, and strategic partnerships. 7 EQR Group WO3 Production – Update Q3 CY2024 EQR Quarterly WO3 Production (1 mtu = 10kg WO3) from Q1 2023 60,000 50,000 mtus 40,000 30,000 20,000 10,000 0 Q1 - CY23 Q2 - CY23 Q3 - CY23 Saloro Q4 - CY23 Q1 - CY24 Q2 - CY24 Q3 - CY24 Mt Carbine 8 Last 12 Month Priorities – Status Update ✓ EQR - Global Expansion and Collaboration: Emphasis on becoming an important global supplier of tungsten concentrate, expanding beyond Australia into operations in Spain with Barruecopardo. – Saloro acquisition,TMG Deal, Elmet Agreement Executed ✓ People, Safety, and Community Engagement: Building and training a workforce, with an absolute focus on safety, and engaging with local communities as a responsible mining operator. – Mt Carbine going to Owner Operator mining, Staffing climbing from 90 workers to 156 YoY, Stakeholder Sentiment Survey, EQR Group growing, total staff ~280 Staff ✓ Exploration and Expansion: Exploring extensions of the Mt Carbine/Barruecopardo orebodies and executing the Wolfram Camp work program. – Wolfram Camp METS grant, soil sampling and Ore Sorter trial ✓ Implementing advanced technology like the TOMRA XRT ore-sorters and an advanced crushing circuit to optimise mining operations. – Saloro recovery Increase to 60+% with Ore Sorter contributing to 800+mtu per week, new Ore Sorter for MtCarbine Q3CY25 ✓ Mt Carbine - Construction of BFS Phase 2 (expanded crushing and screening plant). – Construction to start CY Q1 25 ✓ Mt Carbine - Re-opening underground access to decline – assess & define UG PFS scope of work. – Decline opened, drilling to start 2025 ✓ Mt Carbine – Drilling at 10meters centers to confirm resources. 9 Tungsten - A Critical Metal EQR Is Unhedged, Provides Spot Price Exposure To a Tight Market EU: The Most Economically Important Critical Material Graphite Scandium Indium 5,000 Tungsten SUPPLY RISK Germanium Gallium Rhenium Lithium Vanadium Phosphate Rock Silicon Portugal 0.8% Rwanda 1.2% North Korea 0.5% Other 1.5% 2,000 1,000 - ECONOMIC IMPORTANCE Spain 1.1% (up to 50% of Western Mine Supply) 3,000 Hafnium Manganese Tantalum Chronium Tin Tellurium Molydbenum Iron Ore Feldspar Potash Magnesite Kaolin Clay Silver Sulphur Gypsum Zinc Aluminium Talc Nickel Titanium Silica Sand Gold Copper Aggregates Limestone Lead Austria 1.1% 4,000 Target 3,000 5,000t WO3 p.a. Cobalt Coking Coal Tungsten Production by Country tWO3 Production Projections* PGMs Beryllium Bauxite Baryte EQR Consolidated Group Raw Materials Critical Non-critical Niobium Borate FY2022 Tungsten Reserves by Country FY2023 Mt Carbine FY2024 Saloro FY2025 FY2026 FY2027 Wolfram Camp *FY 2022, FY 2023, FY 2024 Actuals + Onwards Projections. 100% Equivalent WO3 t, Wet Weight Spain 1.4% Vietnam 2.7% North Korea 0.8% Austria 0.3% Portugal 0.1% Russia 10.8% Bolivia 1.8% Russia 3% Vietnam 5.7% Others 32.5% China 83% Total World – 79kt WO3 Total World – 3,700 kt China 51.4% 10 Summary Deal Terms - TMG Acquisition • Acquisition Structure: EQR has executed a binding Heads of Agreement (HoA) to acquire 100% of the shares in Tungsten Metals Group Limited, and subsidiaries, including Mr. George Chen’s interest in Asia Tungsten Products Co Ltd, securing 100% ownership of the TMG Group. ▪ • TMG Ferrotungsten Plant - Vietnam TMG Group own and operate the largest ferrotungsten (FeW) plant outside of China, located in Vietnam, with a potential production capacity of 4,000tpa FeW. Indicative Valuation: A$13.5M, inclusive of acquisition of TMG Group shares and liabilities, subject to conditions precedent and applicable adjustments at closing, per the terms of the HoA. • Consideration: • • Equity: ~170M new EQR shares issued to TMG shareholders Cash: A$2.5M funded via customer prepayments for FeW • Exclusivity Period: Parties committed to exclusivity until 20 December 2024. • Conditions Precedent: • • • • Completion of due diligence Signing of definitive agreements Regulatory and shareholder approvals Standard transactional conditions • Expected Completion: Targeted for H1 2025, pending fulfilment of conditions. • Escrow Arrangements: Related parties receiving EQR shares will face a 12-month voluntary escrow, ensuring long-term alignment. EQ Resources to Acquire 100% Interest in Producer of High-Quality Ferrotungsten. 18 Nov 2024 (link) 11 TMG Acquisition - Strategic Rationale • Raw Materials Supply: The Vietnam facility is the largest tungsten smelter outside China. Prior success of the operations was limited by a lack of quality raw materials to produce FeW at scale. EQR resolves this by providing a stable supply chain from its tungsten operations in Australia and Spain. • Vertical integration of EQR’s upstream operations aligns with EQR’s corporate strategy to leverage its existing substantial resource base and production output along the tungsten supply chain. • Leadership position gained, with largest FeW plant (by capacity) outside of China. • Capture higher margins from conversion of tungsten concentrate to value-added FeW product, achieving approx. 20% value addition to concentrate and accessing higher margin markets where FeW has outperformed APT prices. • Diversification and de-risking: EQR will 100% own and operate tungsten operations on three continents with access to a global customer base. Tungsten concentrate shifted to FeW production, may have positive benefits for the APT price segment, which is the price basis for EQR’s concentrates. • Policy shift by Western Governments: • ▪ Strategic / Critical Minerals classification (funding opportunities) ▪ Sanctions / Tariffs / Incentivise decoupling TMG acquisition expands EQR’s footprint to three continents Australia, Spain, and Vietnam strengthening its position as a leading Western tungsten producer. Strengthening ties between Vietnam and Australia (recently entered into a Comprehensive Strategic Partnership) and solid growth outlook for Vietnam’s overall economy. 12 Market / Ferrotungsten (FeW) Product Tungsten supply chain (simplified): • FeW market representing approx. 15% of concentrate consumption • FeW capacity outside China very limited, higher dependency on China for FeW as compared to APT Outside of China, the main consumers of FeW are steelmakers located in Japan & Europe: Expanded product portfolio (post TMG transaction) Partnerships Source: Tungsten Metals Group; United Nations Comtrade Database 13 FeW Production & Applications 14 Mt Carbine Operations Australia 15 16 Mt Carbine Open Pit Operations Mt Carbine Open Pit Operations Objective: Access higher-grade tungsten ore in Iolanthe vein by stripping South Wall Fault. Current Status: Progressive grade increases during Eastern cutback ensure steady ore production during cut back – Johnson/Bluff. Outcome: Ramp up concentrate production from 150tpm to +200tpm concentrate within 4 months increasing to exceptionally high levels in 2027. (Doesn’t account for 2x processing capacity) Iolanthe Bulk Sample @ 0.5% WO3 Owner-Operated Mining: +200,000tpm ramping to 450,000tpm within 3 months. Cost Optimization: Internalisation of mining & drilling, acquisition of 2x Sandvik DP1100i drill rigs and expanded technical support teams reduces overall $/t mining cost. Stage II Pit Advancement: Wider benches for better sequencing, increased mining rates, 24/7 mining and larger blasts to further reduce overall costs. 17 Mt Carbine Production Doubling Plant Capacity Est. Completion Q4 FY2025 Monthly Throughput 166k tonnes ** 90-95% recovery 83k tonnes Processing Costs A$16.55 /tonne 85-90% recovery A$11.30 /tonne ** *Nominal capacity ** Providing by-product revenue 18 Mt Carbine - Exploration & Underground Potential Iron Duke 2 North West Pit Extension Hole EQ026 BFS Pit 1 Resources Drilling to bring in more resources from inferred to indicated 2 Exploration Drilling Iron Duke zone 3 Hole EQ026 depth extents 1 5.95m@0.94% WO3 Resources: Indicated Resources Extension Hole Resources: Inferred Resources Existing decline Planned development 3 Target Zone 19 Underground potential - Two High Grade Zones To Be Investigated With Further Drilling Iron Duke Western Extensions Saloro (Spain) as Latest Member of EQR Group Saloro - Recovery Optimisation 38% to +70% XRT Sorters Disruptive Technology in the Tungsten Market • Recovery is now consistently at +65% with up to 68% achieved. • Production is stabilised with concentrate output growing with continued optimisation and increasing throughputs. • XRT Sorters perform continuously well, targeting another XRT Sorter acquisition to lift throughputs further allowing growth in concentrate production supported by higher recoveries. • Further optimisation is underway to push recoveries higher. • Significant support and demand for Saloro production from leading Western Tungsten users. Wolfram Camp – EQR Awarded EPM Opportunity & Strategic Rationale Wolfram Camp 5 Major Targets • Wolfram Camp awarded A$250,000 grant from the Queensland Government in partnership with University of Queensland and TOMRA for Ore Sorter trials and sampling More information See ASX Announcement 15 October 2024 (link) Mt Carbine 24 Corporate Priorities of Coming 12 Months EQR - Corporate • Results of TMG DD and Completion of Deal – subject to DD & Terms • Identify opportunities for growth as a globally significant Tungsten raw materials supplier • Progress initiatives around energy efficiency and critical minerals traceability Mt Carbine • Doubling Plant Capacity • 15,000 meters drilling, to bring Inferred to Indicated Resources, new Ore Reserves announcement • BFS on the Underground Mining • Reopening of the underground decline (completed) and drive toward trial mining Wolfram Camp • Soil samples – Ore Sorter trials Saloro • Recovery improvement program – continued refining to lift recovery to +70% • Purchase of 3rd XRT Sorter • Exploration along strike 25 26 Strictly Private and Confidential 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