EQ Resources Limited Annual Report 2024

ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 33 5. INVENTORY 2024 $ 2023 $ Current Finished goods2 1,454,731 341,447 Work-in-progress2 12,152,075 218,517 Raw materials 19,064 39,094 Workshop inventory 3,519,132 278,682 17,145,002 877,740 Non-current Finished goods Raw materials1 1,789,426 6,369,702 1,690,023 6,523,633 8,159,128 8,213,656 25,304,130 9,091,396 1 Raw materials incorporate the fair value of the estimated 7 million tonnes of stockpiled inventory acquired as part of the acquisition of Mt Carbine Quarries Pty Ltd on 28 June 2019, along with the work-in-progress and finished goods inventory which have been created from this stockpiled material since acquisition. 2 Finished goods and work-in-progress incorporate the fair value of 767,663 tonnes of ROM inventory plus 2,477 mtu (mtu = 10kg of WO3) of tungsten concentrate produced but not sold of year-end acquired as part of the acquisition of Saloro on 18 January 2024. Inventory is consumed on a units of operation basis in accordance with AASB102. All inventory, regardless of type and stage in the production process has been valued at the lower of cost and net realisable value (NRV). Inventories expected to be processed or sold within twelve months after the balance sheet date are classified as current assets. All other inventories are classified as non-current assets. The cost of inventories recognised as an expense do not include any write-downs of inventory to NRV. 6. FINANCIAL ASSETS 2024 $ 2023 $ Shares in listed companies:1 Critical Resources Limited (ASX: CRR) 1,160 5,156 1,160 5,156 Capitalised borrowing costs:2 Current 90,117 108,417 Non-current 556,096 200,084 646,213 308,501 Unexpired interest:2 Current 678,582 707,232 Non-current 2,081,492 2,133,500 2,760,074 2,840,732 Deferred acquisition costs:3 Current 72,274 - Non-Current 1,180,185 221,729 1,252,459 221,729 4,659,906 3,376,118 1 Equity instruments are measured at fair value as at reporting date with all changes recognised as other comprehensive income / (loss) in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. 2 During the reporting period, the Company entered into a Royalty Funding Package with Regal Resources Royalties Fund, with the Group receiving $10 million in two separate tranches. The financing consists of a royalty percentage of 3% with a buy-back option after the recovery of the first stage royalty, $10 million (and before the 7th anniversary of the definitive agreement execution) and a payment of $2.75 million, reducing the liability to 1.5% for life of the Mt Carbine Mine. EQ Resources Limited Annual Report 2024 99

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