EQ Resources Limited Annual Report 2021

EQ Resources Limited Annual Report 2021 23 ANNUAL Report June 2021 Directors’ Report 9 Operating & Financial review Information on the operations and financial position 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: (a) Increase in contributed equity of $6,500,000 resulting from: Date Shares $ Placement of 187,500,000 shares at $0.032 per share to institutional and sophisticated investors undertaken pursuant to placement capacities under Listing Rule 7.1 (15% Rule) and Rule 7.1A (10% Rule) (refer ASX announcement dated the 15 March 2021) 19-03-2021 187,500,000 6,000,000 Placement of 15,625,000 shares at $0.032 per share to Directors undertaken pursuant to placement capacities under Listing Rule 7.1 (15% Rule) and Rule 7.1A (10% Rule) (refer ASX announcement dated the 15 March 2021) 20-05-2021 15,625,000 500,000 Sub-Total 6,500,000 Lead manager options (503,385) Share issue costs (415,767) TOTAL 5,580,848 (b) ~$4 Million Purchase Order (including GST) awarded to the Company’s wholly owned subsidiary, Mt Carbine Quarrying Operations Pty Ltd, for the supply of various quarry materials for a road construction project located within the Cook Shire in Far North Queensland (refer ASX Announcement “$4 Million Contract Enhances Order Intake – Mt Carbine” dated 1 July 2020). ~90% of this order was fulfilled during the period with the contract being satisfied in full during the first quarter of the 2022 financial year. (c) Appointment of Kim Cavallaro as Chief Commercial Officer on 1 July 2020 and Executive Director on 1 October 2020. (d) Resignation of Chief Operating Officer, Chris Godfrey, on 31 July 2020. (e) Change of name to EQ Resources Limited effective from 26 November 2020 (refer ASX announcement “Change of Name and ASX Code” dated 1 December 2020). (f) Environmental Approvals granted by the Department of Environment and Science permitting underground exploration and sampling to take place at Mt Carbine (refer ASX announcement “Environmental Approval obtained for Underground Exploration and Sampling Campaign” dated 13 January 2021). (g) Resignation of Kim Cavallaro as Executive Director and Chief Commercial Officer on 15 January 2021. (h) The Company raised $6,500,000 (before costs) via the placement of 203,125,000 fully paid ordinary shares at an issue price of $0.032 cents per share with the placement being undertaken pursuant to its placement capacity under Listing Rule 7.1 (15% Rule) and Rule 7.1A (10% Rule). Refer ASX announcement “EQR Raises $6.5M to Accelerate Mt Carbine Expansion and Underground Development” dated 15 March 2021. (i) Appointment of Richard Morrow, as a Non-executive Director to the Board of EQ Resources on 16 March 2021.