EQ Resources Limited Annual Report 2021

Exploration Activities Mt Carbine During this year the Company has been active in refining the mineral resource information from historical work around the Mt Carbine deposit. The program was based on a new interpretation of the geology and mineralization and a recognition of the structural history of the deposit. This year’s work was built on the work done in the previous year and culminated in a successful drill out of resources around the pit area. A total of 16 diamond drill holes were completed for 4,074.1m during May-June 2021. The holes were drilled within the Mt Carbine ML’s 4867 & 4919 and were expressly located to define the resources remaining under the existing pit. Previously only 7 holes existed below the pit over this 500m strike length. The drilling intersected four major lenses containing ‘grade packages’ separated by 15-30m of barren host rocks. The zones extend East-West along the strike of the Andy White pit and are marked as the Iolanthe, Bluff, Wayback and Johnson Zones. Each is sub-vertical in orientation and extends down to where the zone is truncated by the South Wall Fault (SWF- A Reverse Dip Slip Fault). The zones range from 2m to 12m in width with grades often greater than 1%WO 3 . Attached in Appendix 1 are the highlights of this drill program with all results shown above a diluted cut-off of 2m @ 0.25% WO 3 . Each of the named zones outlined above contain narrow high-grade veins designated as ‘King Veins’ and have been linked to what the historic miners pursued in their underground workings. In historic times, by mining high-grade veins by hand, the miners managed to deliver grades consistently of >1% WO 3 ore to the co-op mill, that was operational in the early 1900’s. These narrow high-grade veins are typically 10-30cm in size and contain a coarse integration of Wolframite and Scheelite crystals often reaching 10cm in size. The King Veins are interpreted to reflect a late brine event in the mineralizing history that occurs after a more pervasive gaseous event that deposited large amounts of early barren or low-grade quartz. Typically, across the existing historical pit we see some 35-40 veins of which about 5-7 veins are mineralized King Veins and these high-grade veins have now been recognized throughout the deposit. There is a strong level control to much of the mineralization, with veins recorded as narrow, weak stringers of 5-15cm width in the +350m RL level and increasing in size and grade with depth, with the best zone of mineralization occurring in the 200-350m RL level. This vertical change in the deposit, is thought to be a function of declining temperature away from a degassing granite at depth and the tungsten depositing in the 250-350°C zone. Although the veins continue strongly to depth the bonanza grades drop off gradually. Mt Carbine Quarries Quarry Stockpiles EQ Resources Limited Annual Report 2021 11