ANNUAL REPORT June 2026 Directors’ Report Principal Activities The principal activities of the consolidated entity for the year ended 30 June 2026 were the exploration, production and sale of tungsten. Results The net result of operations for the consolidated entity after applicable income tax expense was a profit of A$7.1 million (2025: loss of A$39.2 million). EBITDA for the consolidated entity was A$50.6 million (2025: negative A$9.5 million). Dividends No dividends were paid or proposed during the period (2025: nil). Operating & Financial Review Information on the operational and financial performance of the Group and its business strategies and prospects for future financial years is set out earlier in this Annual Report. The auditors have issued an unqualified opinion. Corporate Structure EQ Resources is a limited company that is incorporated and domiciled in Australia. Significant Changes Significant changes in the state of affairs of the Group for the financial year were as follows: 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 of exercised options associated to capital raising activity in FY2025. 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. EQ Resources Limited Annual Report 2026 29
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