EQ Resources Limited Annual Report 2021

The 2021 financial year has been a progressive year for EQ Resources Limited (“EQR” or “the Company”) and its flagship projects at Mt Carbine in Far North Queensland. Highlights The highlights in the year were: − Consistent and ongoing production at the Mt Carbine Gravity Plant, operated under an unincorporated joint venture between EQR and CRONIMET Australia Pty Ltd and trial shipments to leading tungsten consumers in Europe, the US and across Asia; − Improvements to the Mt Carbine Gravity Plant during the year have led to the plant capacity now being able to achieve the targeted 1,000 tonnes per day of feed processed, a tungsten recovery average of +70% and a operational availability of +80% for the months of June, July and August 2021; − The Mt Carbine Quarry fulfilled approximately 90% of its $4 million contract with Bama Civil for a major road construction project in Far North Queensland with the balance of the contract being fulfilled during the first quarter of the 2022 financial year. This contract utilised recycled inert waste rock from a historical waste pile considered an environmental burden at site; − Significant progress made on the development of the XRT Sorter operational capacities and bulk trials of the Low Grade Stockpile (“LGS”) which has seen +70,000t of material now processed through the pilot unit, the algorithm optimised and a consistent +/-10 times upgrade of the feed to sorter concentrate showing the benefit and viability of the technology for the project; − High-Definition drilling allowed a concise reinterpretation of the geology allowing high grade lenses to be connected; Hole EQ012 extension successfully intersected a new postulated extension of the Iron Duke System and opened up large areas to add further resources; EQ015 showed exceptional grade in the Bluff and Iolanthe zones that were not known before. A further review of the Company’s operating and financial activities for the 2021 financial year up until the date of this report is set out in this section. Health, Safety and Environment Health & Safety Injury Frequency Rates for Mt Carbine Operating and Financial Review 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 Q1 2020 FY Q2 2020 FY Q3 2020 FY Q4 2020 FY Frequency per million man hours Month Mt Carbine Rolling Frequency Rates 2020-2021 LTIFR TRIFR 1 1 1 1 IR 4 EQ Resources Limited Annual Report 2021