ANNUAL Report June 2024 Directors’ Report 5 Date Number of Shares Issue Price $ Issue of 5,000,000 shares @ $0.0432 per share upon the exercise of unlisted options granted to sophisticated investors (refer ASX announcement 20 March 2024) 20/03/2024 5,000,000 $0.0432 216,000 Issue of 205,940,008 shares @ $0.0450 per share to sophisticated investors as part of the May 2024 placement (refer ASX announcement dated 29 May 2024) 29/05/2024 205,940,008 $0.0450 9,269,999 Issue of 542,384 shares @ $0.0461 per share for Senior Financial Advisor Service Fees (refer ASX announcement dated 28 June 2024) 28/06/2024 542,384 $0.0461 25,004 Fair value of options exercised 808,570 TOTAL 42,162,613 (d) 50% joint venture interest in the Mt Carbine Tungsten Operation, acquired by EQR’s wholly owned subsidiary Mt Carbine Retreatment Pty Ltd. A long-term offtake arrangement has also been entered into under which CRONIMET Asia Pte Ltd (“CR Asia”) will purchase all tungsten concentrate from the Mt Carbine Operation. The parties agreed on the following consideration for the transfer of the joint venture interest: ▪ EQR to issue new ordinary shares at $0.09 per share to CR Asia (or its nominee), equal to a total of US $7.5 million; ▪ EQR will assume all JV assets and liabilities, including all obligations under the Offtake Agreements. As part of the transaction, CRONIMET will be granted the right to enter into a product marketing agreement with EQR for the Barruecopardo Mine currently operated by Saloro. This agreement is conditional upon closing the acquisition of Saloro by EQR. Refer ASX Announcement “Strategic Partner Cronimet Joins EQR Register, as EQR Acquires JV Interest from Cronimet” dated 18 October 2023 . Refer Note 21. Subsequent Events for further announcements pertaining to the above acquisition. (e) Completion of a new JORC 2012 compliant Mineral Resource Estimate (“MRE”) updating Saloro’s historical resource statement added 4.74M mtu (mtu = 10kg WO3) to EQR’s resource inventory, resulting in EQR’s Indicated and Measured In-Situ Resources increasing by 69%. 78% of the Saloro MRE is in the Indicated and Measured Category. Refer ASX announcement “Saloro Adds 69% of Measured and Indicated Resources to EQR’s In-situ Resource Inventory” dated 1 February 2024 and “Supplement information to Saloro Mineral Resource Estimate” dated 7 February 2024. (f) Delivery completion of all core equipment under the Sandvik Crushing & Screening Package ordered in July 2022 to facilitate the doubling of throughput capacity at the Mt Carbine mine. The construction schedule is currently in the process of being finalised. Refer ASX announcement “Mt Carbine Receives Additional Equipment for Doubling of Throughput Capacity” dated 20 March 2024. (g) $20 Million 3-year loan facility agreement executed with Queensland Investment Corporation (“QIC”) from the Queensland Critical Minerals and Battery Technology Fund (“QCMBTF”). ▪ Tranche A: $12 Million to assist in doubling processing capacity and commence underground drill testing. ▪ Tranche B: $8 Million to continue underground drill testing and commence underground trial mining. Utilisation of this facility is subject to the satisfaction of customary conditions precedent, including project completion testing. For key terms, refer to ASX announcement “QIC Approves A$20M Funding for Mt Carbine Tungsten Mine Expansion” dated 8 May 2024. (h) $2.17 million R&D Tax refund received for the 2023 financial year from activities focused on the Company’s commitment to operational improvement and innovation, such as: ▪ Studies on the reduction of equipment wear (selection and trial of new materials for relevant equipment, trial of new operational conditions – in particular, with regards to fluid velocity); EQ Resources Limited Annual Report 2024 71
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