Corporate Activities Leadership Team The Leadership Team has remained stable through the period with no changes. EQR is focused on stability within the Senior Management team in the development of the Mt Carbine Project and future growth and expansion of the Company. Financing Activities Convertible Notes – September 2021 In September 2021, the Company raised a further $6.0 million via the issuance of 2 year convertible notes with a conversion of 6.5 cents per share, a ~45% premium to the last price of 4.5 cents per share (“Convertible Notes”). The funds will be used to commence early works for its Mt Carbine tungsten mine, well ahead of the release of the Company’s Bankable Feasibility Study. Details: Amount: A$6.0 million Term: Two years with the ability to be converted early by the Note Holders. Coupon: 7% per annum. Coupon payable in shares or cash at the election of the Note Holders. Conversion Price: $0.065 per ordinary share, a ~45% premium to the last close on 8 September 2021. Conversion Terms: C onverted into new ordinary shares or repayment of the loan at the Note Holders election. The Note Holders may elect to convert the Convertible Notes into new shares early during the term. CAPEX Funding – Mt Carbine Project As announced on 2 May 2022 the following commitments have been securedwhich will fully fund the circa $15million Mt Carbine plant expansion to transform the historic mine waste and the high-grade resources into a sustainable source of tungsten, along with a green aggregate by-product. For further details refer ASX Announcement “CAPEX Funding for Mt Carbine Expansion Secured” dated 2 May 2022. Table 8: CAPEX Funding – Mt Carbine Project Facility Amount ($, up to) Interest p.a. / Cost / T&C CMAI Grant * $6.0 million No cost; Grant support Sandvik Supply & Finance ** $4.8 million 5.75% interest p.a.; 30% deposit; up to 48 months repayment Offtake Prepayment $4.2 million Interest free; Extension of existing Cronimet offtake contract Shareholder Loan $1.5 million 8% interest p.a.; Unsecured; 6 months repayment Total $16.5 million * see ASX announcements ‘Federal Government Funding For Mt Carbine Critical Minerals Program’ dated 28 April 2022 and “Federal Government Funding for Mt Carbine Reconfirmed” dated 19 September 2022 ** see ASX announcement ‘EQR And Sandvik Agree On Binding Terms For Financing Of Crushing & Screening Plant’ dated 8 March 2022 Financial Risk Refer Note 26 in the “Notes for the Consolidated Financial Statements”. EQ Resources Limited Annual Report 2022 29
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