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
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