EQ Resources Limited Annual Report 2024

Processing Timeline of Plant Development & Recovery Optimisation Q1 FY2024 (July to September 2023): During the first quarter of FY2024, Saloro’s processing plant achieved notable milestones, demonstrating operational efficiency and strategic advancements. In July, the plant set a new historical production record, showcasing exceptional operational performance. The ongoing Recovery Enhancement Plan focused on improving metal recovery rates, yielded a metal recovery rate of 48%, underscoring the effectiveness of the enhancement strategies. The commissioning of the Tomra XRT Ore Sorter marked a significant leap in processing efficiency, and by August, the sorter had transitioned to regular operation, becoming an integral component of the workflow. Concentrate homogenisation tests were conducted on August 8th to enhance processing consistency, followed by modifications to the Spiral and table circuits and water adjustments from the primary screen to primary jigs on August 10th. These changes significantly improved processing efficiency. Additionally, on August 18th, parameters and tonnage adjustments to the hydrosizer were made, further optimising its performance as part of the ongoing recovery enhancement strategy. September saw continued refinement of operations, including a critical consultation with metallurgist Kevin Harney, who provided expert guidance for metallurgical improvements. Despite a disruption caused by a swing jaw failure in the jaw crusher, the quarter ended on a high note with significant improvements in jig performance following modifications to jig meshes on September 20th. Regular monitoring of the rod mill was also initiated, maintaining an optimal fill level to ensure efficient grinding. Q2 FY2024 (October to December 2023): The second quarter of FY2024 was characterised by focused efforts on enhancing plant performance and preparing for future expansions. In October, a large team from EQ Resources, along with metallurgist consultant Kevin Harney, visited the mine, focusing on strategies to improve plant performance further. This led to significant improvements in jig performance and subsequent recovery rates. Key modifications to flow and screen panels on October 10th and 17th, respectively, aimed at optimising processing outcomes, were successfully implemented. Recognising the need for expanded processing capacity, a purchase order was placed in October for a second Tomra Ore Sorter, with delivery scheduled for the end of December 2023. November continued the optimisation trend, with monitoring and enhancement of the jig’s hydraulic circuit beginning on November 2nd. Additionally, coarse table tailings were recirculated starting November 8th, improving material recovery, and cyclone testing with AMP commenced on November 13th, exploring further enhancements to the processing circuit. The month also saw modifications to the spiral circuit and an expansion of jig operations to include eight jigs, aiming to boost throughput and recovery efficiency. By the end of December 2023, Saloro’s operations demonstrated marked improvements across various metrics. The total tonnes crushed reached 711,912, while the total tonnes milled amounted to 533,382, reflecting the enhanced efficiency and throughput of the plant. Q3 FY2024 (January to March 2024): Following the acquisition of Saloro by EQ Resources in January 2024, the Crushing and Ore Sorter Plants witnessed significant advancements. The most notable change was the installation and commissioning of the second Tomra XRT Ore Sorter that leverages the experience gained from the Company’s Mt Carbine Operation. Previously, Saloro’s process setup discarded any ore larger than 6mm post tertiary crushing because its grade, below 0.06% WO3, was deemed uneconomical for further processing. During its ramp-up phase, the XRT Sorting Plant has achieved ore grade enhancements of more than 25 times, processing sorter feed with a grade below 0.06% WO3 into a sorter concentrate with a grade between 1.5-2% WO3. Operating and Financial Review continued 58 EQ Resources Limited Annual Report 2024

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