Subsequent to the end of the FY2024, after 14 months of mining at cost-plus basis, the mining operations at Mt Carbine are transitioning to an owner-operator model. The owner-operator model will result in cost savings, operational control and mining flexibility while upskilling the local workforce. A 90-tonne Cat Excavator was commissioned in early September to replace the Hitachi 190-tonne excavator, and the operations have moved to a 24h per day mining roster, from the previous 12h per day. This increases tonnes moved monthly, reduces overall unit costs and provides earlier access to the higher grade vein packages. A comprehensive rollout plan is ongoing, with key machinery already delivered and additional equipment arriving as scheduled. New and leased equipment has been mobilised on-site, ensuring a smooth transition. See ASX Announcement 16th August 2024: “Mt Carbine Mine transition to owner-operator mining. Reserve & Resource Statement The last published MRE (Mineral Resource Estimate) for the Company was from the Measured Group in May, 2023 (https://www.eqresources.com.au/site/pdf/5b25d6d9-cd6c-4b61-a01b-177baa3da4b2/64-Increase-of-MtCarbine-Indicated-Resources-InSitu.pdf). The Resource and Reserves have subsequently been updated in June 2024 based on the mining activity completed since the May 2023 statement. In total, 2,157,155 tonnes of material were mined over the 12 month period and 760,000 tonnes of ore sent for processing at a waste-ore strip ratio of 2.84:1. This ore yielded 1,395 tonnes of concentrate at 50% WO3 grade after processing. Approximately 360 tonnes of further concentrate remained in untreated oversize and on the ROM pads. Depletion over the past 12 months due to mining was 1.8% of the total Resources and 12.8% of Current Reserves, as per the table below. Orebody Resource Classification Tonnes (Mt) Grade (% WO3) WO3 (mtu) Low-Grade Stockpile Indicated 10.13 0.075% 759,450 Indicated 2.57 0.070% 166,832 Inferred 0.83 0.060% 53,789 Subtotal 13.53 0.070% 980,071 In-Situ Indicated 17.49 0.30% 5,235,286 Inferred 10.68 0.30% 3,217,311 Subtotal 28.17 0.30% 8,452,597 All Total 41.70 0.23% 9,432,668 Mt Carbine Ore Resources Estimate at 30th June 2024.* Reserve Category ROM Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Open Cut - Proven – – – Open Cut - Probable 5.36 0.28% 1,500,800 Open Cut - Total 5.36 0.28% 1,500,800 LGSP - Proven – – – LGSP - Probable 9.77 0.075% 732,750 LGSP - Total 9.77 0.075% 732,750 All - Total 15.13 0.148% 2,233,550 Mt Carbine Ore Reserve Estimate at 30th June 2024. NOTES: • Total estimates are rounded to reflect confidence and resource categorisation. • Classification of Mineral Resources incorporates the terms and definitions from the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012) published by the Joint Ore Reserve Committee (JORC). • No uppercut was applied to individual assays for this resource, a lower cut of 0.05% was applied within the section 0.06-0.08% WO3 being designated as lower grade In-Situ. This is the grade where District Zones of mineralisation occur. • Drilling used in this methodology was all diamond drilling with 1/2 core sent according to geological intervals to Australian Laboratory Services (“ALS”) for XRF15b analysis. • Resource estimation was completed using the Kriging Methodology. • Indicated spacing is approximately 30m x 30m; Inferred is approximately 60m x 60m. EQ Resources Limited Annual Report 2024 31
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