ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (i) Borrowings 2026 A$’000 2025 A$’000 Current Unsecured borrowing at amortised cost Loan from related parties - 8,736 8,736 Secured borrowing at amortised cost Bank loans - 35,804 Bank loans – undrawn - (932) - 34,872 Traxys commercial prepayment facility (Saloro S.L.U) Current portion 8,914 - 8,914 - Non-Current Traxys commercial prepayment facility (Saloro S.L.U) Non-current portion 15,592 - 15,592 - Total 24,506 43,608 During the year, the Group repaid and extinguished all outstanding secured and unsecured borrowing facilities, including the four Oaktree Capital Management L.P. bank loans and the OCM Luxembourg Tungsten Holdings S.à.r.l. short-term borrowing (settled via the 22 May 2025 share placement, EGM-approved 19 July 2025). In February 2026, Saloro S.L.U. (“Saloro”), together with EQ Resources Limited and European Tungsten Pty Ltd as co-obligors, entered a €15 million commercial prepayment facility with Traxys Europe S.A. (“Traxys”), alongside a linked tungsten concentrate offtake agreement and a subordination agreement with key terms listed below: • Interest: EURIBOR (1 month) plus 5.5% margin; • Term: 36 months from financial close; final discharge date 18 February 2029; • Repayment: monthly principal instalments, commencing from the month-end falling six months after financial close (August 2026); • Settlement mechanism: product deliveries under the linked offtake agreement may be applied against monthly amounts due, capped at €500,000 plus accrued interest per month; any shortfall must be settled in cash; and • Subordination: Traxys ranks as senior creditor to intra-group and other subordinated lenders under the subordination agreement. The Traxys commercial prepayment facility is classified as a financial liability under AASB 132 (rather than a contract liability under AASB 15), reflecting its defined maturity, market interest rate and mandatory repayment terms. It is initially recognised at fair value, net of the €225,000 formalisation fee, and subsequently measured at amortised cost using the effective interest method. Management has assessed that the commodity-linked settlement feature (repayment via product deliveries) does not constitute a separable embedded derivative under AASB 9, as it affects only the method of settlement rather than the amount owed. Refer to Note 2- Significant Accounting Judgements, Estimates and Assumptions for further detail. 78 EQ Resources Limited Annual Report 2026 Notes to the Consolidated Financial Statements continued
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