ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 43 Combined Deferred Expenditure, Plant and Equipment and Financial Assets 2024 $ 2023 $ Non-current assets Receivables 1,248,267 4,487,440 1,248,267 4,487,440 Plant and equipment Plant and equipment – at cost 105,669,214 15,307,239 Accumulated depreciation (6,145,479) (1,292,283) 99,523,735 14,014,956 Inventory Inventory – Quarry Material 8,159,128 8,812,714 Inventory – Workshop - 278,682 8,159,128 9,091,396 Deferred exploration and evaluation expenditure Exploration and evaluation expenditure 16,183,365 14,554,304 Tenement and other security deposits – increase / (decrease) - 99,406 Amortisation (1,261,246) (380,579) 14,922,119 14,273,131 TOTAL 123,853,249 41,866,923 Reconciliation of the carrying amount of Mt Carbine assets at the beginning and end of the current and previous financial year: 2024 $ 2023 $ Combined assets carrying amount at the beginning of the year 41,866,923 26,590,574 Receivables – increase / (decrease) (3,239,173) 3,306,742 Plant and equipment – additions 14,838,290 8,470,929 Plant and equipment – acquisition of subsidiary 76,885,253 Plant and equipment – WDV of disposals (69,285) (179,685) Plant and equipment – depreciation expense (6,145,479) (1,292,283) Inventory – increase / (depletion) (932,268) 1,402,083 Tenement & other security deposits – increase - 99,406 Capitalised exploration and evaluation expenses 1,934,696 3,640,380 Capitalised exploration and evaluation expenses - R&D Tax Offset (24,462) (39,427) Capitalised exploration and evaluation – amortisation (1,261,246) (131,796) TOTAL 123,853,249 41,866,923 21. SUBSEQUENT EVENTS There have been no material events subsequent to 30 June 2024 that have not previously been reported other than: ▪ The execution of a definitive agreement to acquire CRONIMET’s joint venture interest (being the remaining 50% not yet owned by EQR) in the Mt Carbine Retreatment JV. Refer ASX announcement “EQR Executes Definitive Agreement to Acquire Mt Carbine Retreatment Joint Venture Interest from Cronimet” dated 5 July 2024. ▪ Completion of a further 37 holes on Infill RC Drilling at 10m spacing into the Main Vein Packages at Mt Carbine, totalling 1,437m of drilling which revealed serval high-grade intersections (internals are down hole intercepts sampled at 1m intervals and then composited). Refer ASX announcement “High-Grade Drilling Result at Mt Carbine” dated 29 July 2024. ▪ Golding Contractors Pty Ltd (Golding) was engaged by EQ Resources Limited, Mt Carbine Mining Pty Ltd and Mt Carbine Quarries Pty Ltd under a Mining Services Agreement for Mount Carbine dated on or around 26 May 2023 (Contract). Upon termination of the Contract, the parties agreed to settle all outstanding payables owed to Golding by way of a repayment schedule, with payments to be completed over the course of the reminder of the current financial year. EQ Resources Limited Annual Report 2024 109
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