− The Panama Hat Project appears structurally complex and the intersection of the NE and NW trending structures represent target areas for drilling. The Telephone Line Prospect has: 1. High grade gold rocks existings at surface (Visable); 2. Multiple historic pits; 3. Positioned on a small rise showing harder rocks; and 4. No evidence of historic drilling. − A field mapping and sampling campaign will start at the Telephone Line Prospect. If required, a structural geologist will assist. This information will determine where and on what azimuth for future drilling. Crow Mountain – New England − Land Access Agreement in place with the main station owner being Kilpara. Sozo is paying monthly rent for the shipping container which houses the Icon (former name of EQ Resources Limited) era drill core. − Sozo has secured the contiguous exploration ground to the Crow Mountain Exploration Licence with EL 9406 − Preliminary field trip conducted in February 2022 where the following 17 rock chip samples were taken: − o S ample CMRC008: 9.71g/t Au from the Crow King Prospect and CMRC011: 5.23g/t Au from the Princess Mine area. These prospects are east of the Peel Fault and hosted in schistose sediments and quartz veins. Looks structurally controlled and more akin to an orogenic gold system. Abigano drilled in this area in the 80s and intersected gold mineralisation close to surface such as: 17m @ 0.75g/t Au from 6m incl 2m @ 1.85g/t Au from 16m. Ultimately Abigano abandoned the area due to the low gold price of circa US $300/Oz. Obvious opportunity therefore exists to work this area up with prospect scale mapping, soil sampling and then shallow percussion drilling. − Multiple rock chip samples were taken of the Listwanite (silica-carbonate altered serpentinite) outcrop in the vicinity of the historic Icon drill holes and as expected, low level gold was returned, up to a maximum of 58ppb. Note: the gold in Listwanites are related to the early Permian-Triassic batholiths which drove hydrothermal cells and led to the silica-carbonate or “Listwanite” alteration of the serpentinites. This alteration scavenges gold from magnetite and is transported large distances as a Au-S complex, typically along fault planes. The gold in our case, has most likely dropped out of solution when it encountered the carbonaceous fault gouge of the Peel Fault, upon inspection of the drill core. So, more drilling is required directly targeting the Peel Fault itself. There is enough information to generate targets now, but further Electromagnetics may assist in fleshing out the stronger conductive carbonaceous areas. And of course, the IP chargeability anomalies (obtained by EQR’s predecessor, Speciality Metals International Limited) are coincident with Au-As-Hg anomalism at surface remain valid drill targets. − No PGEs associated with the Listwanite alteration Tungsten Market Outlook and Concentrate Production Throughout the last year APT (Ammonium Paratungstate; as the underlying price reference for tungsten concentrate) prices between US$255/mtu (metric ton unit; equals 10 kg) in July-August 2021 and US$350/mtu, as of the date of this report, have been seen. This represents an increase of approximately +25% within the period, and confirms the strong underlying fundamentals the tungsten market is in at the moment. Figure 11: Total Magnetic Intensity (TMI) of Crow Mountain. EQ Resources Limited Annual Report 2022 27
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