EQ Resources Limited Annual Report 2021

Quarry Activities The Company had a very productive year through the Mt Carbine Quarry operations, which has successfully completed one of the largest quarry contracts in its history with no supply side delivery delays over the contract. This contract completed for the Bama Civil Group was used in the construction of approximately 10 kilometres of sealed road on the Northern Peninsula Development Road using completely recycled inert waste rock materials from the Mt Carbine stockpiles. Over 70,000t of road making materials was used in the satisfaction of this contract. Mt Carbine Quarries is the largest and one of the most northern hard rock quarries in Queensland. It is a fully permitted, established business which has been in operation for over 20 years within the Mt Carbine Mining Leases. The Company’s cost competitiveness is primarily due to all of its feed stock being sourced from readily available stockpiled mined rock, meaning no drill and blast activities are necessary. The synergies between the quarry and the Company’s mining activities through beneficial waste reuse, reinforces the Company’s commitment to reducing its environmental footprint and maximising value from all resources on site. In addition to satisfying the Bama contract over the period several other smaller contracts were also completed and several tenders submitted, with more tenders becoming available for submission toward the end of the financial year. This appears to be a result of Government stimulus packages targeting infrastructure for the region being rolled out. It is anticipated that the quarry will see the benefits of this stimulus during the upcoming financial year. A recent quote from the Hon. SJ Stewart, the Queensland Minister for Resources confirms the Government’s strong understanding and awareness of the project and the beneficial impact of how the project is being implemented: “ In industry, I give the example of EQ Resources which are recommercialising the former abandoned tungsten mine at Mount Carbine in north-east Queensland. EQ Resources are using advanced ore sorting technology to optimise recovery of valuable tungsten ore from waste ore. Their technology sourced from their German partner Cronimet is allowing them to reprocess waste stockpiles to create value from waste.” Operating and Financial Review continued Bama Contract - Road Base Production, Mt Carbine Quarry The Company has continued taking steps to empower the current labour force by rewarding outstanding individuals in their respective fields. This has seen the promotion of one of the quarry’s most experienced operators, Mandy McAuley, to become the Supervisor of the Quarry operations. Her experience in the practical operations and running of quarries and over 30-years in the industry has been invaluable to the operation and development of the quarry into a first class asset for the Company. The quarry currently produces more the 18 products, of which, the regular products are stockpiled on site and ready for despatch. As contracts continue to be successfully completed, the modernisation of the quarry gains traction and is allowing the quarry to tender on larger jobs in more distant regions when combined with the beneficial reuse of the XRT Sorter waste materials as a product supply for quarry aggregates. The Company continues to look for innovative solutions for the quarry that will allow for sustainable and continuous income. In this connection, the Company has continued investigating potential value- add technologies to transform rock waste into higher- value, lower-carbon intensive building products, mainly bricks and innovative road making materials for the time being. 10 EQ Resources Limited Annual Report 2021