EQ Resources Limited Annual Report 2021

A summary of the results of the plant upgrades during the 2021 financial year are set out below: − Feed throughput increase to a consistent 1,000t per day; − Increased gravity plant availability to +80%; − Increased tungsten recovery to +70%; and − Improved concentrate product quality. The operation of the Gravity Plant occurred during these unprecedented times caused by the global COVID-19 pandemic which led to certain challenges over the period. Whilst the operation was not directly affected by any enforced shut-downs, certain logistical challenges for the delivery of spare parts and additional equipment continued to be experienced over the period and led to delays for some of the operational activities. This has led to the operational team at site significantly increasing their parts and equipment supplier base along with list of logistics contractors. These challenges and streamlining of procurement and inventory stock policies and processes will only serve as a positive as the operation continues to grow. This early development of the Gravity Plant and processing of historical tailings while gradually progressing into the processing of the LGS fines material and XRT sorter concentrate has allowed a detailed and structured approach to the processing of the materials available to ensure the maximum outputs were achieved at each step. The operation is now functioning with a well-established organisational structure that allows for the efficient flow of operations. This will be of significant benefit to the operation as it grows in the processing of LGS fines material and XRT sorter concentrate on a consistent basis. Processing LGS fines produced a significantly higher ratio of tungsten to head feed when compared to the tailings material due to the inherently higher grade and recoverability of the tungsten in the primary fines material. Percentage 0 10 20 30 40 50 60 70 80 90 100 Q1 2021 FY Q2 2021 FY Q3 2021 FY Q4 2021 FY Q1 2022 FY Tungsten Concentrate Loaded for Export to the US Operational Availability % EQ Resources Limited Annual Report 2021 7