ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements 2026 A$’000 2025 A$’000 (d) Unrecognised deferred tax assets Deferred tax assets Provision for employee entitlements 700 563 Lease liabilities 3,575 7 Accruals 91 30 Unrealised foreign exchange 261 - Section 40-880 deductions 677 549 Legal fees (cost base) and other 227 - Debt deduction denial - Thin Cap 40 - Australian tax revenue losses 28,129 19,853 Spain tax revenue losses 17,133 14,852 50,833 35,854 Deferred tax liabilities Deferred stripping (3,665) - Right of use asset (2,056) (473) Property, plant and equipment (192) (160) Exploration and evaluation (3,278) (2,976) (9,191) (3,609) Net deferred tax assets 41,642 32,245 An income tax receivable of A$3.4 million (FY25: Nil) has been recognised in relation to income tax payable in Spain in relation to the operations of Saloro SLU, the tax rate applicable to EQR in Spain is 25%. This represents a refund of income tax instalments that were paid during the period but are not required due to income tax losses in Spain being available to offset the income tax liability. The income tax rate applicable to EQR in Australia for the 30 June 2026 income year is 30% (2025: 25%). Deferred tax assets have not been recognised in respect of tax losses as they may not be used to offset taxable profits elsewhere in the Group and there is insufficient evidence to support recoverability in the near future. The Group has total Australian revenue tax losses at 30 June 2026 of A$93.8 million (2025: A$79.4 million). A future income tax benefit which may arise from Australian tax losses of A$28.1 million will only be obtained if: • The parent and the subsidiaries derive future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; • The parent and the subsidiaries continue to comply with the conditions for deductibility imposed by the law; and • No changes in tax legislation adversely affect the Parent and the Subsidiaries in realising the benefit from the deductions for the losses, i.e. current tax legislation permits carried forward tax losses to be carried forward indefinitely. No franking credits are available for subsequent years. 74 EQ Resources Limited Annual Report 2026 Notes to the Consolidated Financial Statements continued
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