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
RkJQdWJsaXNoZXIy MjE2NDg3