Annual 2026 Report
Directors Michael Nossal Non-Executive Chair Craig Bradshaw Managing Director Oliver Kleinhempel Non-Executive Director Zhui Pei Yeo Non-executive Director Stephen Weir Non-Executive Director Nicole Brook Non-Executive Director Constandinos (Taki) Dermedgoglou Non-Executive Director Company Secretary Virna Trout Registered Office Level 7A, 410 Queen Street Brisbane, 4000, QLD T +61 (0)7 4094 3072 W www.eqresources.com.au E info@eqresources.com.au Principal Place of Business 6888 Mulligan Highway Mount Carbine QLD 4871 Share Register Automic Pty Ltd Level 5, 126 Phillip Street, Sydney NSW 2000 T +61 (0)2 9698 5414 Auditors Nexia Melbourne Audit Pty Ltd Level 35, 600 Bourke Street Melbourne VIC 3000 T +61 (0)3 8613 8888 F +61 (0)3 8613 8800 Stock Exchange Listing Listed on the Australian Securities Exchange (ASX) ASX Code: EQR ACN: 115 009 106 ABN: 77 115 009 106 Corporate Directory 1 Non-Executive Chair’s Address 4 Managing Director’s Address 6 About EQ Resources Limited 7 Financial Review 9 Review of Operations 9 Barruecopardo Mine (Spain) 13 Mt Carbine Operations (Australia) 18 EQR Tenements 18 EQR Tenement Interests 20 Risk Management and Sustainability 25 Directors’ Report 44 Consolidated Statement of Profit or Loss and Other Comprehensive Income 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Cash Flows 47 Consolidated Statement of Changes in Equity 48 Notes to the Consolidated Financial Statements 103 Consolidated Entity Disclosure Statement 105 Directors’ Declaration 106 Auditor’s Independence Declaration 107 Independent Auditor’s Report 112 Shareholder Information 115 Forward Looking Statements Contents
Non-Executive Chair’s Address I am pleased to present my first letter to you as Chair of EQ Resources Limited. I joined the Board on 31 March 2026, nine months into a financial year that tested the Company and all its stakeholders. FY2026 began with some questions about the Company’s liquidity and its ability to continue as a going concern. It finished with the balance sheet recapitalised, a record June quarter for revenue and operating cash flow, and an unmodified audit opinion, as Craig Bradshaw sets out in his Managing Director’s letter. By the time I joined the Board, the turnaround was well underway and the Company’s long-held potential was beginning to be realised. That is to the credit of the EQR team and of the Board that preceded me, led by Oliver Kleinhempel, who served as Chair through the hardest part of the year. There is, of course, still much to do to realise that potential fully. We are all conscious that the recapitalisation over the last two years came at a cost to existing shareholders, and the Board thanks those shareholders who supported the placements when the outlook was far from certain. It is now incumbent on us to continue turning that support into sustained value creation. The most important part of that effort concerns the safety and wellbeing of our people. The Board is not satisfied with the safety outcomes during FY2026, although we acknowledge the considerable effort and investment made by management. We do consider that the audits and safety leadership changes now in train are the appropriate actions, and we will be monitoring the safety outcomes closely during FY2027 with a clear expectation of measurable improvement. The market in which we operate has changed fundamentally since the start of FY2026. Tungsten is a critical mineral in the fullest sense: essential to industrial manufacturing, aerospace, energy and defence, with supply concentrated in a small number of countries. In a period of complicated geopolitics, Western governments are paying far more attention to the provenance and security of supply, while prices have risen well beyond anything in the Company’s history. This places EQR in a position of rare strategic and commercial opportunity. As one of the few established tungsten producers outside China, with operating mines in Australia and Spain, EQR is already integrated into Western-aligned supply chains and continues to position itself to benefit from the strong price environment. The Board’s responsibility is to ensure that disciplined, reliable execution converts this opportunity into sustained value. Accordingly, we are aligned on the strategy to do this. First, deliver reliable production from Mt Carbine and Barruecopardo, with greater resilience to weather and operating disruptions. Second, grow the reserves and resources around each mine. Third, pursue regional exploration and growth, with Mt Carbine and Barruecopardo as the processing hubs for districtscale operations in their proven tungsten regions. Fourth, invest sensibly in production growth and a lower cost base, of which the Mt Carbine crushing expansion approved in June is a good example. Fifth, selectively increase EQR’s participation in Westernaligned tungsten supply chains where this strengthens the Company’s strategic position, market access and shareholder value. Michael Nossal Non-Executive Chair EQ Resources Limited Annual Report 2026 1
The Board also believes that how we create value matters as much as the value we create. EQR’s values are ones I am comfortable standing behind: act safe and feel safe, tread lightly, lead with integrity, embrace difference, dig deep and buddy up. The Board is aligned on ensuring that these values set the expectations for how we treat our people, our communities and the environment, and they will guide the Company into the next phase of its development. Further to my appointment in March, Board renewal has continued. Stephen Layton stepped down on 31 July 2026 after more than eight years as a Director, a period that took in the redevelopment of Mt Carbine, the acquisition of Barruecopardo and the recapitalisation. I thank Stephen sincerely for his contribution, particularly noting the difficult times that his tenure included. We have since welcomed Nicole Brook and Taki Dermedgoglou as Non-Executive Directors. I am also pleased that Stephen Weir will continue as an independent Non-Executive Director and Chair of the Audit and Risk Committee. The Board now has a strong and diverse mix of skills and experience, well-suited to supporting the Company through our next phase of transformation. Looking ahead, FY2027 offers an opportunity the Company has not had before: higher-grade ore accessible at both mines, a growth project in execution, a sound balance sheet and a price environment that rewards production. The Board’s expectations are clear: a strong financial result that takes full advantage of the market environment; targeted growth, delivered safely and within our means; and systems, processes and governance that keep developing to the standard of an established mid-tier mining company, as we are determined that EQR is becoming. Finally, a sincere thank you to our shareholders, because this year belongs to you more than any. You stayed with the Company through the hard times, and you are now starting to see the reward for that support. An enormous thank you to Craig, his leadership team and the dedicated employees at our two mines, without whose tremendous efforts, the outcome this year may have been quite different. My thanks also to my fellow Directors for their counsel, our communities, host governments, industry bodies, customers and all our stakeholders. I am confident that your efforts and patience will we well rewarded by the Company’s bright outlook. Michael Nossal Non-Executive Chair EQ Resources Ltd Non-Executive Chair’s Address continued 2 EQ Resources Limited Annual Report 2026
EQ Resources Limited Annual Report 2026 3
Managing Director’s Address Dear Fellow Shareholders, FY2026 was a defining year for EQ Resources – and, I will say plainly, a difficult one. We began the financial year confronting acute liquidity and solvency challenges that threatened the very continuity of the business. We end it recapitalised, profitable, cash generative and with the strongest balance sheet in the Company’s history. Having stepped into the Managing Director role on 1 October 2025, in the midst of that most challenging period, I am proud of what our people achieved in the twelve months to 30 June 2026 – and clear-eyed about what we must do better. Restoring the balance sheet The first half of the year was dominated by the recapitalisation of the Company. Through a series of placements, we raised A$56.5 million in new equity to settle outstanding creditors, reduce debt and restore working capital, and settled a further A$25.8 million of debt through the issue of shares. We received A$23.5 million from the exercise of options associated with FY2025 raisings, and we refinanced €15 million of external debt in Spain with Traxys Europe S.A. over a three-year term at EURIBOR plus a margin of 5.5%. The results of that work are evident throughout this report. The Company recorded a statutory net profit after tax of A$7.1 million (FY2025: loss of A$39.2 million) and EBITDA of A$50.6 million (FY2025: negative A$29.7 million). At 30 June 2026 we held A$28.2 million in cash (FY2025: A$1.9 million) and a net working capital surplus of A$16.2 million, against a restated deficit of A$96.8 million a year earlier. Most importantly, the financial statements in this Craig Bradshaw Managing Director report carry an unmodified audit opinion: the going concern qualification that attached to our previous accounts no longer applies. The liquidity and solvency challenges that defined the start of FY2026 are now well behind us. That outcome was only possible because our shareholders backed the Company when it mattered most. The recapitalisation came at a real cost – shares on issue increased from 2.7 billion to 5.1 billion – and we do not take that support lightly. Our obligation now is to convert a repaired balance sheet into sustained returns. Safety I must be equally direct about safety: our performance this year was well short of acceptable, and it will be a core focus of management in FY2027. At Barruecopardo, the lost time injury frequency rate improved from 22.5 to 15.8, a step in the right direction but still too high. At Mt Carbine, the LTIFR deteriorated from 36.6 to 43 – a result that is simply not good enough, despite significant effort and investment from management during the year. We have not waited for this report to act. Independent safety audits were completed at both operations during the second half, actions arising are well underway, and a new safety manager joins the Mt Carbine leadership team in the first quarter of FY2027. Structured training, toolbox engagement and comprehensive drug and alcohol testing continue across both sites. Nothing we mine is worth an injury, and the Board and I expect a step change in performance in the year ahead. 4 EQ Resources Limited Annual Report 2026
Operations and weather Group production for the year was 118,946 mtu of WO₃ (FY2025: 167,805 mtu), with Barruecopardo contributing 90,666 mtu and Mt Carbine 28,280 mtu. The shortfall against the prior year was overwhelmingly weather-driven, and the pattern was almost cruelly symmetrical across our two hemispheres. At Mt Carbine, insufficient water leading into the end of the December 2025 quarter constrained processing, before cyclone-related weather systems through the wet season disrupted mining, blast cadence and production in the March 2026 quarter. At Barruecopardo, a 1-in-50-year rainfall event – the wettest start to a year in Salamanca in some five decades – flooded the southern pit and significantly curtailed production through the March and June 2026 quarters, forcing mining into lower-grade areas at a higher strip ratio. These events have taught us a clear lesson, and we will not rely on the weather being kinder next year. In future years we will mitigate this risk by building ROM stockpiles ahead of the wet seasons at both operations, ensuring the processing plants can continue to run at capacity when pit access is restricted. I am pleased to report that both operations exited the year strongly. At Mt Carbine, first access to the higher-grade Iolanthe vein was achieved in March 2026 following the removal of 1.6 million tonnes of overburden from the Southern Highwall, and June quarter production rose 176% to 13,050 mtu – the operation’s best quarter in over two years. At Barruecopardo, the higher-grade southern ore body was re-accessed in the first week of July 2026 following an extensive dewatering effort. The June 2026 quarter delivered record group revenue of A$79 million and record operating cash flow, momentum we carry into FY2027. A transformed tungsten market Our recovery has coincided with an extraordinary shift in the tungsten market. The Fastmarkets APT benchmark rose from around US$350/mtu in March 2025 to approximately US$2,900/mtu by the end of June 2026, driven by Chinese export restrictions and surging strategic demand for secure, Westernsourced supply. As a leading tungsten producer in the Western world, with long-term offtake agreements at both operations, EQ Resources is exceptionally well placed to benefit – but only if we produce. That is why the operational discipline, weather resilience and safety improvement described above matter so much. Investing in growth With the balance sheet restored, we returned to growth in the second half. In June 2026 the Board approved the A$39 million Mt Carbine Expansion Project, which will double crushing capacity from approximately 1 Mtpa to 2 Mtpa and automate the crushing, screening, ore sorting and product handling circuits, with commissioning expected to commence in the March 2027 quarter. Resource drilling programs are underway at both operations – approximately 12,155 metres at Barruecopardo and 7,700 metres at Mt Carbine – supporting resource and reserve updates in late 2026, and a 12,000-metre program at Wolfram Camp commences in the second quarter of FY2027. We also materially expanded our regional footprint, lifting our tenement holdings around Mt Carbine from 783 km² to 1,136 km², with a further 824 km² under application, through the acquisition of the Hodgkinson tenement package from Sunshine Metals and of Aus Critical Minerals and TTTP1, which brought with them the mining licence for Mt White. Together these transactions underpin our hub-and-spoke strategy, positioning Mt Carbine as the central processing hub of a district-scale tungsten province in Far North Queensland. Outlook and thanks FY2027 begins with the higher-grade zones open in both pits, a strengthened balance sheet, a A$39 million growth project in execution and a tungsten price environment unlike any in living memory. Our priorities are unambiguous: a step change in safety performance, weather-resilient operations underpinned by ROM stockpiling, delivery of the Mt Carbine Expansion Project, and continued growth in resources and reserves across both districts. To our employees and contractors in Queensland and Salamanca, who worked through floods, cyclones and considerable uncertainty with resilience and professionalism – thank you. To my Board colleagues, thank you for your counsel through a demanding year. And to our shareholders, who stood by the Company through its most testing period, thank you for your patience and support. FY2026 asked a great deal of everyone associated with EQ Resources. I am confident the foundations laid this year will reward that faith. Yours sincerely, Craig Bradshaw Managing Director EQ Resources Limited Annual Report 2026 5
EQ Resources Limited (EQR or the Company) is building a connected Western tungsten platform, anchored by two producing mines in Australia and Spain and supported by long-term offtake, customer and strategic partner relationships. Barruecopardo Mine is the largest tungsten mine in Europe, comprising an open pit and a modern processing plant that combines ore sorting and gravity separation. The Company holds eight adjacent exploration tenements supporting future growth. Concentrate from Barruecopardo is sold under long-term volume-based agreements referencing the Fastmarkets Tungsten APT 88.5% WO3 Rotterdam CIF price for the month of shipment. Mt Carbine, on the Mulligan Highway northwest of Cairns, was historically one of the world's major tungsten mines and has been progressively redeveloped - initially through the processing of historical stockpiles and now through open pit mining of the primary orebody. Ore is upgraded using two ore sorters ahead of a gravity circuit producing a tungsten concentrate for export. The Company holds significant exploration tenements in the region including Wolfram Camp and the mining licence for Mt White. Concentrate from Mt Carbine is sold under a long-term volume-based agreement referencing the Fastmarkets Tungsten APT 88.5% WO3 Rotterdam CIF price for the month prior to shipment. About EQ Resources Limited 6 EQ Resources Limited Annual Report 2026
Financial Review A$28.2m Cash on hand (FY25: A$1.9 million) A$50.6m EBITDA (FY25: negative A$9.5 million) A$154m Net Assets (FY25: A$36.3 million) Key Performance Indicators EQ Resources Limited Annual Report 2026 7
Financial Review Financial Performance and Position The Company reports a statutory net profit after tax of A$7.1 million for the year ended 30 June 2026, compared to a statutory net loss after tax of A$39.2 million as at 30 June 2025. EBITDA for the year was A$50.6 million, compared to a negative A$29.7 million in FY2025. At 30 June 2026, the Company held A$28.2 million (FY2025: A$1.9 million) of cash on hand and had a net working capital surplus of A$16.2 million (FY2025: restated deficit of A$96.8 million). Year ended Measure 2026 2025 2024 2023 2022 Net profit / (loss) after tax A$’000 7,113 (39,228) (14,425) (3,717) (6,063) Net assets A$’000 154,268 36,287 44,330 16,305 14,317 Cash and cash equivalents A$’000 28,180 1,874 3,490 5,336 1,723 Cash flows from operating activities A$’000 (5,595) (16,918) (12,704) (1,393) (3,113) EBITDA A$’000 50,576 (9,513) (5,169) (829) (4,478) Share price at 30 June A$ 0.290 0.040 0.048 0.070 0.047 Basic earnings / (loss) per share Cents 0.18 (1.70) (0.13) (0.26) (0.45) Funding Primary focus during year was to recapitalise the Company and refinance external financing facilities. Key actions completed during the year were as follows: − Raising A$56.5 million in the first half of the year to settle outstanding creditors, reduce debt and provide working capital to progress Company objectives. − Settling A$25.8 million of debt with the issuance of shares in parallel to the capital raises performed in the first half of the year. − Refinancing €15 million of external debt over a three-year period with an interest rate of EURIBOR plus a margin of 5.5% with Traxys Europe S.A. − Receiving A$23.5 million from the exercise of options associated with FY2025 capital raising activity. Shares on Issue Due to the recapitalisation of the Company, issued capital increased to A$198.3 million (FY2025: A$93.5 million, with ordinary shares on issue increasing from 2,727,672,193 to 5,115,488,534). 8 EQ Resources Limited Annual Report 2026
Review of Operations Barruecopardo Mine (Spain) 15.8 LTIFR per million hours worked for the year (FY25: 22.5) A$16.3m of operating cash flow was generated during the year (FY25: A$1.7 million) WO3 in concentrate was produced (FY25: 119,023 mtu) 90,666 mtu Key Performance Indicators EQ Resources Limited Annual Report 2026 9
The key performance metrics for the Barruecopardo Mine are tabulated below: Barruecopardo Mine UoM 2026 2025 % Change Safety performance LTIFR Freq. 15.8 22.5 31% Operational performance Material blasted t 9,208,641 7,040,148 31% Total tonnes mined t 8,603,184 7,016,943 23% Ore mined t 1,138,272 1,344,365 (15%) Waste mined t 7,464,912 5,672,578 32% Strip ratio W:O 6.6 : 1 4.2 : 1 (57%) Crushing plant feed t 1,674,956 1,445,453 16% Ore sorter plant feed t 635,722 455,102 40% Sorter concentrate produced t 121,651 86,575 41% Gravity plant feed t 925,279 904,599 2% Gravity plant feed grade % 0.19% 0.26% (27%) Recovery % 55% 57% (4%) WO3 produced mtu 90,666 119,023 (24%) WO3 sold mtu 89,087 116,586 (24%) Financial performance Average realised price US$/mtu 851 259 228% Nominal cash cost of production US$/mtu 357 229 (56%) Operating and Financial Review continued Health and Safety Efforts continued to build a proactive safety culture with ongoing weekly training being delivered across the operation with ongoing alcohol and drug testing for persons entering site. This included external training on several critical activities such as working at heights, hot works and the risk of respirable crystalline silica. The Company also commissioned independent assessments of its safety culture, policies and procedures continuing its ISO 45001 (safety) and ISO 14001 (environment) certifications. An independent risk assessment was conducted in April 2026. Mining The mining team performed exceptionally well during the year despite the 1-in-50-year rain event during the March quarter. Material moved was significantly greater than FY2025 despite the challenges created by the event. Unfortunately, due to the rain event, the team operated in a lower grade area of the pit than anticipated leading to a substantially higher strip ratio and a lower feed grade for the year. The higher-grade ore body was re-accessed in the first week of July 2026. Processing Processing performance at Barruecopardo in FY2026 reflected the year’s mining disruption, with output declining through the middle of the year before a partial recovery into year-end. Across FY2026, the site crushed approximately 1.67 million tonnes of ore, sorted approximately 636,000 tonnes through its ore sorting circuit, and processed approximately 925,000 tonnes through the wet plant, producing 90,666 mtu of WO₃ in concentrate for the year at an average recovery of 55.3%. 10 EQ Resources Limited Annual Report 2026
Resource and Reserve Growth Program Barruecopardo advanced a significant resource definition drilling programme during the final quarter of FY2026, aimed at strengthening confidence in the existing geological model and testing the potential for resource growth at depth. The initial programme comprises 36 diamond drill holes for a total of approximately 12,155 metres, concentrated primarily in the eastern area of the open pit. Of the 36 holes, 16 are infill holes designed to improve confidence in the existing geological model, while the remaining 20 are targeting the deeper parts of the deposit and northern and southern extensions to assess the potential for mineral resource expansion. Geotechnical logging is being undertaken alongside geological logging across the programme, to build a stronger understanding of rock mass conditions ahead of future mine design work. Annual Mineral Resources Statement Mineral Resources as at 30 June 2026 Mineral Resources as at 30 June 20251 Orebody JORC Code Category Tonnes (Mt) Grade (% WO3) WO3 (mtu) Tonnes (Mt) Grade (% WO3) WO3 (mtu) In-Situ Measured 6.85 0.177 1,214,272 10.05 0.191 1,920,400 Indicated 9.52 0.177 1,682,554 10.46 0.174 1,820,000 Inferred 3.85 0.259 997,546 3.86 0.259 999,300 Subtotal 20.22 0.193 3,894,372 24.37 0.195 4,739,700 Annual Ore Reserves Statement Ore Reserves as at 30 June 2026 Ore Reserves as at 30 June 2025 JORC Code Category Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Open Cut - Proved 2.40 0.14 329,842 5.69 0.152 865,037 Open Cut - Probable 9.21 0.14 1,254,807 3.10 0.145 448,982 Open Cut - Total 11.61 0.14 1,584,649 8.80 0.156 1,314,019 Ore Stockpile - Proved 0.05 0.10 5,048 0.24 0.173 41,589 Ore Stockpile - Total 0.05 0.10 5,048 0.24 0.173 41,589 Open Cut & Ore Stockpile - Total 11.66 0.14% 1,589,697 9.04 0.150% 1,355,608 Marginal Stockpile - Proved 0.18 0.05 9,155 Total Including Marginal Stockpile 11.84 0.14 1,598,852 Scalping Stockpile - Proved 0.32 0.06 18,652 Total Ore Reserve 12.16 0.13 1,617,504 9.04 0.150 1,355,608 Notes: 1 The Mineral Resource as at 30 June 2025 is as described in ASX Announcement 4 November 2024. The movement in the Barruecopardo Mineral Resource and Ore Reserve estimates between 30 June 2025 and 30 June 2026 is due to mining depletion only. There has been no material change to the Mineral Resource or Ore Reserve models, or to the assumptions and technical parameters underpinning the estimates, other than depletion arising from mining and processing during the period. 2 Totals may not add up due to rounding. 3 The tonnes depleted for the actual mining have been calculated by regular topographic surveys, to which density factors have been applied to derive tonnes. These density factors are the same as described in the report for the Resource Estimate as at 30th of June 2025. 4 The Ore Reserve is the economically mineable part of the Measured and Indicated Mineral Resource. It includes allowance for ore losses and dilution during mining extraction. 5 The Ore Reserve as at 30 June 2026 includes 0.5tonnes of proved stockpiles, which were not separately identified in the 30 June 2025 comparison. Stockpiles have been estimated by Saloro from topographical survey, and assigning grades derived from the operational grade control and production estimates. 6 The Company ensures that the Mineral Resource and Ore Reserve estimates quoted are subject to governance arrangements and internal controls at both a site level and at the corporate level. Mineral Resources and Ore Reserves are prepared and reported in accordance with the JORC Code 2012, using industry standard techniques and internal guidelines for the estimation and reporting of Ore Reserves and Mineral Resources. The Mineral Resource and Ore Reserve statements included in the Annual Report were reviewed by the Competent Persons prior to inclusion. EQ Resources Limited Annual Report 2026 11
Competent Person’s Statement - Barruecopardo Mine Mineral Resources The information in this report is extracted from the statement named “Barruecopardo Scheelite Mine - Annual Mineral Resource Statement June 2026” and has been prepared by Mr Jörg Pohl, Consultant to Saloro and Independent Resource Geologist. Mr Pohl has contributed to previous Resource estimates for Barruecopardo and has provided professional services to the operation over many years. Mr Pohl is a qualified Geologist (MSc Geology, Universität Freiburg i.Br., Germany), has over 25 years of experience, is a member of the European Federation of Geologists (EFG) and holds the title EurGeol (#1728). Mr Pohl has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Mr Pohl has been working for Saloro during the last 6 years by providing consulting expertise in resource estimation, delivering resource and grade control block models. Mr Pohl has no material interest or entitlement, direct or indirect, in the securities of EQR or any associated companies. Mr Pohl consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. Ore Reserves The information in this report is extracted from the statement named “Barruecopardo Scheelite Mine - Annual Ore Reserves Statement June 2026” and has been prepared by Mr Jesús María Montero González, Principal Mining Consultant and Director of Mining Sense Global SL. and reviewed by Mr Hugh Thompson. Mr Montero is a qualified Mining Engineer (MSc Mining Eng., Universidad Politécnica de Madrid - Spain), has over 24 years of experience and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) FAusIMM 3111131. Mr Montero has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Mr Hugh Thompson is a FAusIMM and CP (mining), with AusIMM membership # of 111 543. Mr Montero and the Mining Sense Global SL team have been working for Saloro during the last 7 years by providing consulting expertise in mine design and mine schedule for medium and long term. Neither Mr Thompson, Mr Montero or Mining Sense Global SL has any material interest or entitlement, direct or indirect, in the securities of EQ Resources Limited or any associated companies. Mr Montero and Mr Thompson consent to the inclusion in the release of the matters based on their information in the form and context in which it appears. Operating and Financial Review continued 12 EQ Resources Limited Annual Report 2026
Mt Carbine Operations (Australia) 43.0 LTIFR per million hours worked for the year (FY25: 36.6) (A$14.1m) net operating cash outflow (FY25: negative A$7.9 million) WO3 in concentrate was produced (FY25: 48,782 mtu) 28,280 mtu Key Performance Indicators EQ Resources Limited Annual Report 2026 13
The key performance metrics for the Mt Carbine Mine are tabulated below: Mt Carbine UoM 2026 2025 % Change Safety performance LTIFR Freq. 43.0 36.6 (57%) Operational performance Material blasted t 2,834,951 1,441,502 97% Total tonnes mined t 2,770,009 2,240,652 24% Ore mined t 407,020 573,797 (29%) Waste mined t 2,362,989 1,666,855 42% Strip ratio W:O 5.8 : 1 2.9 : 1 (100%) Crushing plant feed t 565,141 756,318 (25%) Ore sorter plant feed t 366,199 462,105 (21%) Sorter concentrate produced t 29,528 36,117 (18%) Gravity plant feed t 226,771 238,031 (5%) Gravity plant feed grade % 0.17% 0.24% (29%) Recovery % 77% 83% (7%) WO3 produced mtu 28,280 48,782 (42%) WO3 sold mtu 28,588 50,040 (43%) Financial performance Average realised price US$/mtu 1,277 251 409% Nominal cash cost of production US$/mtu 1,013 412 (146%) Health and Safety Despite significant effort from management, the safety performance was disappointing at Mt Carbine. Training and structured toolbox talks were increased across all teams, while ongoing alcohol and drug testing continued. An independent safety audit was performed in the March 2026 quarter. Actions identified during the audit are well underway and with a new safety manager joining the Mt Carbine leadership team in Q1 FY2027, it is expected that the Company will see a step change in performance moving forward. Mining The primary objective of the mining team was to access the in-situ Iolanthe vein orebody by removing 1.6 million tonnes of overburden from the Southern Highwall and addressing a major geotechnical fault. Initial access to the Iolanthe vein occurred in March 2026, with further access progressing in accordance with the mine plan. Investment in the team, equipment and maintenance practices is starting to show with material moved during the year up 24% and a blasting record of 2.8 Mt was achieved during the year. As the team progresses into the Iolanthe vein the stripping ratio and head grade are expected to improve. Processing Processing performance at Mt Carbine in FY2026 reflected a year of plant reliability challenges balanced against a genuinely strong finish. Significant efforts have focused on improving the availability of the processing plant with significant investment in capital spares and maintenance during the second half of FY2026. Mt Carbine exits FY2026 with a clearer picture of its key plant reliability constraints and a program of engineering upgrades already underway, providing a solid foundation to convert FY2027’s improved ore access into sustained processing performance. Operating and Financial Review continued 14 EQ Resources Limited Annual Report 2026
Expansion Project In June 2026, the Board approved the A$39 million Mt Carbine Expansion Project with commissioning expected to commence in the March 2027 quarter. The Project is designed to increase Mt Carbine’s crushing capacity, the operation’s current processing bottleneck, from approximately 1 Mtpa to approximately 2 Mtpa, while automating and integrating the crushing, screening, ore sorting and product handling circuits into a single continuous flow. The expanded capacity is expected to initially lift targeted production by 500 tonnes of WO₃ per annum through processing of the Low-Grade Stockpile (LGSP), with further upside available as Mt Carbine’s resource-to-reserve conversion, Wolfram Camp exploration, Mt White and other regional sources progress. FY2026 was a year of significant expansion for EQR’s regional tungsten footprint around Mt Carbine, combining an active resource-definition drilling program at the existing mine with two material tenement acquisitions that materially extended the Company’s district-scale position in Far North Queensland’s tungsten basin. Resource and Reserve Growth Program The Company actively sought to increase its tenement holdings, progress the Wolfram Camp exploration opportunity and progressively secure prospective exploration landholdings within the Mt Carbine mine area. Mt Carbine At Mt Carbine, a drill program is underway targeting extensions to existing resources and reserve definitions across the Bluff, Dazzler, Iolanthe, Johnson, Ruby and Iron Duke ore zones. The program comprises 28 drill holes for approximately 7,700 metres, combining diamond drilling and reverse circulation (RC) grade control drilling, and is designed to improve geological confidence in currently planned resources, test extensions to known mineralisation, and support a planned resource and reserve update in late 2026. With only 23% of Mt Carbine’s current resource converted to reserve, the program represents an important step in unlocking further mine life and production growth at the operation. Wolfram Camp Commencing in Q1FY2027, a significant drill program at Wolfram Camp is underway, comprising approximately 12,000 metres of combined diamond (7,000m) and RC (5,000m) drilling. A 3D Induced Polarisation geophysical survey is underway to refine drill targets and inform geological modelling. In parallel, the Company is progressing the key regulatory and land access workstreams required to bring Wolfram Camp back into operation. Mt Carbine District Landholdings The Company has entered two separate transactions to increase its tenement footprint from 783 km2 to 1,136 km2 with a further 824 km2 of exploration licences under application: In June 2026, EQR entered a binding agreement with Sunshine Metals Limited to acquire a 100% interest in the Hodgkinson tenement package, comprising six granted Exploration Permits for Minerals covering approximately 365 km2, directly adjacent to Mt Carbine. In July 2026, EQR further expanded its regional footprint, completing the acquisition of Aus Critical Minerals Pty Ltd and TTTP1 Pty Ltd, adding approximately 353 km2 of tungsten-focused tenure and applications in the Mareeba district. This acquisition included the mining lease for Mt White. Together, these acquisitions materially strengthen EQR’s regional exploration pipeline and support the Company’s hub-and-spoke strategy, positioning Mt Carbine as the central processing hub within a broader, multi-generational regional tungsten basin. EQ Resources Limited Annual Report 2026 15
Annual Mineral Resources Statement Mineral Resources as at 30 June 2026 Mineral Resources as at 30 June 20251 Orebody JORC Code Category Tonnes (Mt) Grade (% WO3) WO3 (mtu) Tonnes (Mt) Grade (% WO3) WO3 (mtu) In-Situ Indicated 17.34 0.280 4,935,823 18.06 0.30 5,405,901 Inferred 10.64 0.300 3,201,048 10.68 0.30 3,217,311 Subtotal 28.00 0.290 8,136,871 28.74 0.30 8,623,212 LGSP Indicated 9.38 0.075 703,546 10.126 0.075 759,450 Inferred 2.58 0.070 167,696 – – – Inferred 0.83 0.060 53,318 – – – Subtotal 12.80 0.070 924,559 10.126 0.075 759,450 TOTAL 40.80 0.220 9,061,430 38.87 0.23 9,382,662 Annual Ore Reserves Statement Ore Reserves as at 30 June 2026 Ore Reserves as at 30 June 2025 JORC Code Category Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Open Cut - Proved – – – – – – Open Cut - Probable 4.47 0.32% 1,417,202 5.21 0.28% 1,459,735 Open Cut - Total 4.47 0.32% 1,417,202 5.21 0.28% 1,459,735 LGSP - Proved – – – – – – LGSP- Probable 9.38 0.08% 703,546 9.59 0.075% 719,030 LGSP - Total 9.38 0.08% 703,546 9.59 0.075% 719,030 All - Total 13.85 0.15% 2,120,748 14.80 0.147% 2,178,765 Notes: 1 The Mineral Resource as at 30 June 2025 is as described in last published full Mineral Resources Estimate conducted by Measured Group 15 May 2023. The movement in the Mt Carbine Mineral Resource and Ore Reserve estimates between 30 June 2025 and 30 June 2026 is due to mining depletion only. There has been no material change to the Mineral Resource or Ore Reserve models, or to the assumptions and technical parameters underpinning the estimates, other than depletion arising from mining and processing during the period. 2 Totals may not add up due to rounding. 3 The tonnes depleted for the actual mining have been calculated using block model depletion and regular topographic surveys, to which density factors have been applied to derive tonnes. These density factors are the same as described in the Ore Reserve report referenced in footnote 1. 4 The Ore Reserve is the economically mineable part of the Measured and Indicated Mineral Resource. It includes allowance for ore losses and dilution during mining extraction. 5 The Company ensures that the Mineral Resource and Ore Reserve estimates quoted are subject to governance arrangements and internal controls at both a site level and at the corporate level. Mineral Resources and Ore Reserves are prepared and reported in accordance with the JORC Code 2012, using industry standard techniques and internal guidelines for the estimation and reporting of Ore Reserves and Mineral Resources. The Mineral Resource and Ore Reserve statements included in the Annual Report were reviewed by the Competent Persons prior to inclusion. Operating and Financial Review continued 16 EQ Resources Limited Annual Report 2026
Competent Person’s Statement – Mt Carbine Mine Mineral Resources The information in this report relating to exploration results and resources is based on information compiled by Mr Michael Mills who is a member of the Australasian Institute of Mining and Metallurgy and is an employee of Xenith Consulting Pty Ltd. Mr Mills is a qualified geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr Mills consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears. Ore Reserves The information in this report relating to Ore Reserves is based on information compiled by Mr Lee White who is a member of the Australasian Institute of Mining and Metallurgy and is a consultant to Xenith Consulting Pty Ltd. Mr White is a qualified Mechanical and Mining Engineer and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr White consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears. Neither Mr Mills, Mr Whit or Xenith Consulting Pty Ltd L has any material interest or entitlement, direct or indirect, in the securities of EQ Resources Limited or any associated companies. EQ Resources Limited Annual Report 2026 17
EQR Tenements EQR Tenement Interests There has been changes in the Tenements list held by the Company and its controlled entities. The current tenement interests are disclosed below in accordance with ASX Listing Rule 5.3.3. Location Holding Entity Beneficial Interest Interest Acquired or Disposed Area Expiry date Queensland, Australia ML 4867 Mt Carbine Quarries Pty Ltd 100% N/A 358.5 ha 31/7/2041 ML 4919 Mt Carbine Quarries Pty Ltd 100% N/A 7.891 ha 31/8/2041 EPM 14871 EQ Resources Limited 100% N/A 5 sub-blocks 12/12/2025 (renewal Lodged) EPM 14872 EQ Resources Limited 100% N/A 11 sub-blocks 11/12/2025 (renewal Lodged) EPM 28898 EQ Resources Limited 100% 17/6/2024 146 sub-blocks 16/6/2029 EPM 18171 EQ Resources (Exploration) Pty Ltd 100% pending 20 sub-blocks 19/07/2026 (renewal Lodged) EPM 19809 EQ Resources (Exploration) Pty Ltd 100% pending 11 sub-blocks 15/10/2028 EPM 25139 EQ Resources (Exploration) Pty Ltd 100% pending 3 sub-blocks 5/1/2029 EPM 27539 EQ Resources (Exploration) Pty Ltd 100% pending 18 sub-blocks 1/6/2030 EPM 27574 EQ Resources (Exploration) Pty Ltd 100% pending 4 sub-blocks 9/8/2030 EPM27575 EQ Resources (Exploration) Pty Ltd 100% pending 9 sub-blocks 8/2/2031 EPM 29450 EQ Resources (Exploration) Pty Ltd 100% Application Lodged 02/03/2026 15 sub-blocks Priority Applicant EPM 29453 EQ Resources (Exploration) Pty Ltd 100% Application Lodged 02/03/2026 57 sub-blocks Application progressing to grant EPM 29530 EQ Resources (Exploration) Pty Ltd 100% Application Lodged 01/06/2026 98 sub-blocks Priority Applicant EPM 29532 EQ Resources (Exploration) Pty Ltd 100% Application Lodged 01/05/2026 16 sub-blocks Third Priority EPM 29623 EQ Resources (Exploration) Pty Ltd 100% Application Lodged 01/07/2026 32 sub-blocks Third Priority EPM 28574 Aus Critical Minerals Pty Ltd 100% 15/5/2026 29 sub-blocks 1/4/2031 EPM 29422 Aus Critical Minerals Pty Ltd 100% 15/5/2026 29 sub-blocks EPM 28283 Aus Critical Minerals Pty Ltd 100% 15/5/2026 35 sub-blocks 6/3/2028 ML 20728 Aus Critical Minerals Pty Ltd 100% 15/7/2026 42 ha 30/6/2030 EPM 29377 Aus Critical Minerals Pty Ltd 100% pending 13 sub-blocks EPM 29442 Aus Critical Minerals Pty Ltd 100% pending 15 sub-blocks EPM 27628 TTTP1 Pty Ltd 100% 18/5/2026 21 sub-blocks 28/2/2031 EPM 27613 TTTP1 Pty Ltd 100% 18/5/2026 12 sub-blocks 28/2/2031 EPM 27798 TTTP1 Pty Ltd 100% 18/5/2026 23 sub-blocks 29/9/2031 EPM 29533 TTTP1 Pty Ltd 100% Application - Competing - ranked in favour of EQR 83 sub-blocks EPM 29534 TTTP1 Pty Ltd 100% Application - Competing - ranked second in faour of Iltani 31 sub-blocks EPM 29452 TTTP1 Pty Ltd 100% Application - Competing - Ranked in favor of Ballymore. 30 sub-blocks 17/6/2029 ML = Mining Lease; EPM = Exploration Permit for Mineral (QLD); EL = Exploration License (NSW) 18 EQ Resources Limited Annual Report 2026
Location Holding Entity Beneficial Interest Interest Acquired Area Expiry date Granting Salamanca, Spain C.E. Barruecopardo, 6.432-10 Saloro, SLU 100% 18/1/2024 2,100 Ha 1/11/2041 20/11/2014 P.I. Saldeana 1a Fracción, 6.432-11 Saloro, SLU 100% 18/1/2024 29,300 Ha 13 Aug.* 13/8/2001 P.I. Saldeana 2a Fracción, 6.432-12 Saloro, SLU 100% 18/1/2024 13 Aug.* 13/8/2001 P.I. Milano, 6.432-20 Saloro, SLU 100% 18/1/2024 29,000 Ha 13 Aug.* 13/8/2011 P.I. Cortegana, 6.570 Saloro, SLU 100% 18/1/2024 16,700 Ha 14 Nov.* 14/11/2006 P.I. Almonaster, 6.572 Saloro, SLU 100% 18/1/2024 4,300 Ha 14 Nov.* 14/11/2006 P.I. Aracena, 6.649 Saloro, SLU 100% 18/1/2024 5,300 Ha 30 Oct.* 30/10/2008 P.I. Brincones, 6.834 Saloro, SLU 100% 18/1/2024 6,100 Ha 7 May* 7/5/2013 C.E. = Mining Lease; P.I. = Exploration Permit; * renewed annually. EQ Resources Limited Annual Report 2026 19
Risk Management and Sustainability Sustainability EQ Resources is committed to responsible resource development, aligning its values with sustainable operations to drive economic growth while protecting the environment. EQR’s ESG approach aligns with global sustainability standards, including ICMM, GRI, UN SDGs, and Australian Climate Related Financial Disclosures. The program focuses on key areas important to the business and stakeholders, with a commitment to ongoing development of both environmental and social initiatives. EQR Values Material Business Risks The Board is committed to the proactive identification, assessment, and management of risk across all areas of EQ Resources’ business activities. The Company recognises risk management as a cornerstone of good corporate governance and fundamental to achieving both strategic and operational objectives. Effective risk oversight not only mitigates material exposures but also enhances decision-making, identifies opportunities, and underpins the preservation and creation of security holder value. Management reports identified risks through regular operational reporting and, where necessary, through direct and timely communication to the Board. The Company does not currently maintain a dedicated internal audit function; however, oversight is supported through the Audit and Risk Committee, which has ongoing responsibility for monitoring risk management practices and financial compliance. The Managing Director and CFO jointly attested that the Financial Statements are underpinned by a robust system of internal control, and that the Company’s risk management, particularly as it relates to financial risk, has operated effectively throughout the year. While the Company faces risks inherent to the resources sector – including economic, financial, and operational risks that may influence short-, medium-, or long-term outcomes – the Board does not consider EQ Resources to be materially exposed to environmental or social sustainability risks at this stage. Policies and procedures continue to be refined and updated to address emerging challenges and evolving regulatory expectations. Through its governance framework and oversight processes, EQ Resources maintains a disciplined and structured approach to risk, ensuring resilience in operations while remaining focused on delivering sustainable growth and long-term value to its stakeholders. Macroeconomic and Market Risks As a participant in the global tungsten industry, EQ Resources is exposed to macroeconomic and market-related risks that can materially influence its performance. Tungsten pricing is subject to cyclical demand patterns across key end-use sectors such as construction, mining, aerospace, defence, and automotive manufacturing. These industries are sensitive to broader economic conditions, interest rate cycles, and geopolitical developments, which can drive volatility in demand for tungsten products. Act Safe. Feel Safe. Embrace Difference Tread Lightly Dig Deep Buddy Up Lead with Integrity Act safe at work. Care and respect each other. Feel safe to be yourself. Diversity of thinking, skills and background creates value and drives innovation. Embed resource efficiency to minimise environmental footprint & deliver positive societal impact. Go one better. Strive to continuously learn and improve. Challenge the status quo. Collaboration is key to realising shared value. Have courage to do the right thing. Be accountable. WHAT WE CARE ABOUT “Step Up, Stand Out: Own Our Impact” 20 EQ Resources Limited Annual Report 2026
While ammonium paratungstate (APT) reached record prices in FY2026, the market remains susceptible to fluctuations in global industrial output, trade flows and geopolitical policy. In addition, the Company faces risks associated with supply chain dynamics, including shifts in export policies from dominant producers, currency exchange volatility, and the availability of financing for international trade. Such factors may affect the Company’s realised pricing, sales volumes, and margins over the short and medium term. Currency risk also plays a role: as EQR invoices in U.S. dollars but reports in Australian dollars, fluctuations in the USD/AUD exchange rate materially affect revenue and cash flow. Geopolitical tensions – particularly U.S.– China technology rivalries and stricter export licensing – add uncertainty to market access and policy continuity. EQR’s broader strategy to diversify into non-Chinese markets and downstream integration (e.g., through the Elmet offtake or the US APT plant joint venture) helps mitigate exposure, but global economic conditions, trade policy shifts, and macroeconomic cycles remain material risks requiring ongoing management. Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves are estimates of mineralisation that have reasonable prospects for eventual economic extraction in the future, as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). Statements relating to EQR’s Ore Reserves and Mineral Resources have been reported in accordance with the JORC Code and are estimates only. An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. In addition, by their very nature, Resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change and may be updated from time to time. This may result in alterations to mining plans or changes to the quality or quantity of EQR’s Ore Reserves and Mineral Resources, which may, in turn, adversely affect EQR’s operations. EQ Resources Limited Annual Report 2026 21
Mineral production involves risks, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate. No assurance can be given that the anticipated tonnages or grade of minerals will be achieved during production or that the indicated level of recovery rates will be realised. Additionally, material price fluctuations, as well as increased production and operating costs or reduced recovery rates, may render any potential mineral Resources or Reserves containing relatively lower grades uneconomic or less economic than anticipated, and may ultimately result in a restatement of such Resource or Reserve. This in turn could impact the life of mine plan and therefore the value attributable to mineral inventory and/or the assessment of recoverable amount of EQR’s assets and/or depreciation expense. Moreover, short term operating factors relating to such potential mineral Resources or Reserves, such as the need for sequential development of mineral bodies and the processing of new or different mineral types or grades, may cause a mining operation to be unprofitable in any particular period. In any of these events, a loss of revenue or profit may be caused due to the lower-than-expected production or ongoing unplanned capital expenditure in order to meet production targets, or the higher-thanexpected operating costs. EQR seeks to manage and minimise this risk through its existing risk management framework including an external audit process for its Mineral Resources and Ore Reserves. Operational Risks EQR’s operations at Mt Carbine (Australia) and Barruecopardo Mine (Spain) are exposed to the full spectrum of risks inherent in mining and processing activities. These include potential interruptions from equipment breakdowns, difficulties in sourcing replacement parts, challenges in product separation and screening, and adverse weather impacts. Since the restart of open-pit mining at Mt Carbine in June 2023, the site has developed into a fully integrated mining operation. The leadership transition has instilled a strong, hands-on management culture focused on empowering teams, streamlining decision-making, and driving efficiency. In Spain, Barruecopardo benefits from established European infrastructure – roads, ports, and utilities – that support efficient logistics and reduce supply chain risks. Nevertheless, both sites remain subject to uncertainties such as labour availability, industrial disputes, rising input costs (labour, consumables, spare parts, and energy), and potential IT or regulatory disruptions. Broader global events – such as pandemics, geopolitical instability, or significant policy changes – may also materially affect operations and supply chains. EQR mitigates these risks through proactive maintenance programs, investment in workforce training, and embedding resilience within its operational planning. Environmental Risks The Company’s projects operate under stringent environmental obligations, with compliance central to maintaining licences to operate. Regulatory frameworks in both Australia and Spain require detailed reporting and performance against environmental criteria, creating the risk of financial or operational penalties if standards are not met or if requirements increase in scope. To manage these exposures, EQR has developed detailed environmental management plans under its risk framework and invests in continuous monitoring and reporting. At Barruecopardo, Saloro holds ISO 14001:2015 certification, which provides a structured approach to environmental management and continuous improvement. This framework guides resource efficiency, waste reduction, performance tracking, and stakeholder engagement. At Mt Carbine, environmental controls continue to be embedded into the site’s integrated systems, with a focus on reducing tailings, optimising water use, and monitoring biodiversity impacts. These measures provide resilience against regulatory change while reinforcing the Company’s commitment to sustainable operations. Risk Management and Sustainability 22 EQ Resources Limited Annual Report 2026
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