EQ Resources Limited Annual Report 2021

EQ Resources Limited Annual Report 2021 55 ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 41 Combined Deferred Expenditure, Plant and Equipment and Financial Assets 2021 $ 2020 $ Non-current assets Receivables 1,082,071 1,086,681 1,082,071 1,086,681 Plant and equipment Plant and equipment – at cost 4,589,521 3,637,769 Accumulated depreciation (1,781,906) (1,382,828) 2,807,615 2,254,941 Inventory Inventory – Quarry Material 7,708,190 7,437,413 Inventory – Workshop 107,010 108,000 7,815,200 7,545,413 Deferred exploration and evaluation expenditure Exploration and evaluation expenditure 8,456,391 6,896,994 Amortisation (176,038) - 8,280,353 6,896,994 TOTAL 19,985,239 17,784,029 Reconciliation of the carrying amount of Mt Carbine assets at the beginning and end of the current and previous financial year: 2021 $ 2020 $ Combined assets carrying amount at the beginning of the year 17,784,029 15,481,524 Receivables – prior year adjustment (50) - Plant and equipment – additions 1,070,670 2,151,486 Plant and equipment – WDV of disposals (105,490) (8,564) Plant and equipment – depreciation expense (412,507) (219,655) Inventory – increase / (depletion) 269,787 - Tenement & other security deposits – decrease (4,560) 316,660 Capitalised exploration and evaluation expenses 1,572,598 212,753 Capitalised exploration and evaluation expenses - R&D Tax Offset (13,200) (4,241) Capitalised exploration and evaluation expenses recognised upon MCQ acquisition - (5,079) Capitalised exploration and evaluation expenses written down - (140,855) Capitalised exploration and evaluation – amortisation (176,038) - TOTAL 19,985,239 17,784,029 19. SUBSEQUENT EVENTS There have been no material events subsequent to 30 June 2021 that have not previously been reported other than:  The following ASX announcements detailing the drill results from its feasibility study resource drilling program at Mt Carbine: • “Mt Carbine – More High Grade Intercepts” dated 6 July 2021; • “EQR Drilling at Mt Carbine Hits Iron Duke Extensions” dated 13 July 2021; and • “Mt Carbine Hits Bonanza Grades Under Open Pit” dated 5 August 2021.  The raising of $6 million in September 2021 through the issuance of 2-year convertible notes with a conversion of 6.5 cents per share to be utilised to commence early works for its Mt Carbine tungsten mine expansion, well ahead of the release of the Company’s Bankable Feasibility Study (refer ASX announcement “Mt Carbine Early Works Funding Secured for Mt Carbine Expansion, Well Ahead of BFS Release” dated 13 September 2021).