EQ Resources Limited Annual Report 2023

Annual 2023 Report

Directors Oliver Kleinhempel Non-executive Director Non-executive Chairman Stephen Layton Non-executive Director Richard Morrow Non-executive Director Zhui Pei Yeo Non-executive Director Company Secretary Melanie Leydin Registered Office Level 4, 100 Albert Road South Melbourne VIC 3205 T +61 (0)7 4094 3072 W www.eqresources.com.au E info@eqresources.com.au Principal Place of Business 6888 Mulligan Highway Mount Carbine QLD 4871 Share Register Automic Pty Ltd Level 5 126 Philip Street Sydney NSW 2000 T (International): +61 (0)2 9698 5414 Auditors Nexia Melbourne Audit Pty Ltd Level 12, 31 Queen Street Melbourne VIC 3000 T +61 (0)3 8613 8888 F +61 (0)3 8613 8800 Stock Exchange Listing Listed on the Australian Securities Exchange (ASX) ASX Code: EQR ACN: 115 009 106 ABN: 77 115 009 106 Corporate Directory 1 Chairman’s Address 2 Chief Executive Officer’s Letter 4 Operating and Financial Review 46 Mineral Resources and Reserves Statement 48 Competent Persons Statement 50 Directors’ Report 63 Consolidated Statement of Profit or Loss and Other Comprehensive Income 64 Consolidated Statement of Financial Position 65 Consolidated Statement of Cash Flows 66 Consolidated Statement of Changes in Equity 67 Notes to the Consolidated Financial Statements 99 Directors’ Declaration 100 Auditor’s Independence Declaration 101 Independent Auditor’s Report 105 Shareholder Information 109 Forward Looking Statements Contents

Chairman’s Address We are proud of the opportunity presented to take our exploration, mining and minerals processing expertise onto the world stage. Dear Shareholders and Friends of EQR, It is my great pleasure to present to you the 2023 Annual Report for EQ Resources Limited. The past 12 months have seen enormous changes at our Company. Not only have we paved the way for the restart of mining in the Andy White open pit, but we have been presented with an opportunity to take our exploration, mining and minerals processing expertise onto the world stage. As I write, our team at Mt Carbine, led by CEO Kevin MacNeill, is into the third month of mining primary ore from the Andy White open pit. This is the result of two years of planning and implementing the strategy outlined in our feasibility studies, which the team has delivered largely on time and cost effectively. Mt Carbine was historically one of the major global sources of tungsten. Today, with the help of so many employees, contractors and advisers, this grand old Dame of Far North Queensland’s mining history is once again making a name for itself, producing a mineral which is rated as highly critical to the global economy. GOING GLOBAL The world is calling out for new, diverse and - most importantly - sustainably produced sources of tungsten, a unique metal with a wide variety of uses in many industries and parts of daily life. Your Company is committed to be an important supplier of tungsten concentrate into the global market, from not only our Australian operations but also from Barruecopardo in Spain, subject to completion of outstanding conditions precedent as per the Sale and Purchase Agreement with global investment manager, Oaktree Capital Management. It is a delight to be working with a company such as Oaktree which has the foresight to recognise the importance of both the application of advanced technology in ore sorting but also to recognise the importance of developing a stable source of this critical metal for global industrial consumers. We look forward to welcoming Oaktree as a stakeholder in the wider group for the benefit of all shareholders. Oliver Kleinhempel Non-Executive Chairman Last year, I wrote about the importance the EQ Resources Board places on Our People, Our Partners and Our Potential, our 3P’s. They certainly came to the fore in FY23 and will be even more important going into the future, both in Australia and overseas. PEOPLE, SAFETY & COMMUNITY One of the big challenges and opportunities at Mt Carbine is building and training a workforce. It is also one of the leadership team’s most rewarding experiences in rebuilding the importance and reputation of the Mt Carbine Tungsten Mine. We have had some inspiring people join us at Mt Carbine, learning to operate heavy machinery and work complicated mineral processing equipment. Our growing team has not only risen to the challenge but also embraced the need for an absolute focus on safety whilst at work. We have also been welcomed into the local community as a responsible mining operator and our work with local conservation groups has also been acknowledged. THRIVING FOR MORE EQ Resources is looking to build on the achievements of the year under review. In exploration we will be testing for extensions laterally and at depth of the Mt Carbine orebody. We will also be studying opportunities at another former great Queensland tungsten mine, Wolfram Camp, where we have been awarded the opportunity to study the potential of refurbishing this abandoned operation. Our geology team is also looking forward to working with and learning from our new colleagues in Spain to examine the potential for further tungsten opportunities near Barruecopardo. The year ahead is full of opportunity and we look forward to sharing these with our stakeholders as the year unfolds. EQ Resources Limited Annual Report 2023 1

Chief Executive Officer’s Letter Dear Shareholders The 2022-23 Financial Year under review was certainly a year of great change and great achievement at Mt Carbine. It has been my privilege to lead a team of caring and competent mining professionals to rebuild one of the great tungsten mines in the world, outside China. The current year is also starting on a strong note as the Company not only consolidates on progress at our Far North Queensland operations, but takes the skills and lessons learned to a second mine operation in Spain, in conjunction with the team at Saloro. The EQR team has earned many accolades over the past two years, not least of which being the AMEC Environmental Award in 2022. We operate in a unique environment, something our workforce and our contractors pay special regard to in their day-to-day tasks. The Company also operates in and draws its workforce from some very unique communities. From the thriving rural service town of Mareeba to our south, the tourism hub of Port Douglas on the coast to the nearby hamlets of Mt Molloy and Julatten, we are working with local communities to provide jobs and opportunities for Australians young and old. It is the ability to work with local communities, local contractors and local people that will prove so useful as we take the next big step of further developing the Spanish tungsten mine of Barruecopardo, a mine asset which has a lot of common traits with Mt Carbine. EQ Resources has a laser-like focus on safety. The Board and management are extremely proud of the safety record in FY23. Our workforce, which numbers 95 direct employees, and more than 30 contractors in the mining operations, has come with us on this journey of ensuring we have safety as such a priority. I commend the section in this report on safety as something stakeholders can be most proud. The Company has also invested heavily in training with some remarkable achievements in giving young (and not so young) workers the skills to operate heavy machinery and work inside a complex mineral processing plant. One of the great achievements in FY23 has been to honour a Geologist who was instrumental in the resuscitation of Mt Carbine. In naming our open pit after Andy White, the Company pays tribute to the enthusiasm and energy Andy White showed in moving the project forward. EQ Resources made some remarkable progress this year in bringing the Andy White open pit up to a mineable proposition. Mining started just as the year was ending and the first fresh rock went through a processing plant that had previously only treated low-grade stockpiled ore as part of a well-planned and executed commissioning process. At the heart of the process were two high-tech TOMRA XRT ore-sorters, to which we added a third in the later stages of the financial year. TOMRAs 2 & 3 are now at nameplate capacity while our first TOMRA is undergoing upgrade and modification. The past year has once again been a year of strong growth and definitive value addition for the business driving the longterm growth of the Company. 2 EQ Resources Limited Annual Report 2023

As I write, we are working with our mining contractors Golding, a great Queensland company, to fully commission the mine fleet to move a targeted 4,320,000 tonnes of rock and waste a year. An advanced crushing circuit has been ordered and will be installed early in 2024. This circuit will not only treat Mt Carbine ore but – as part of our processing hub strategy - will have the capacity to handle ores from other sources, including from planned underground mining operations at Mt Carbine. Finally, I would like to thank all our stakeholders for their support and encouragement in rebuilding Mt Carbine. We look forward to keeping you informed about progress in Queensland and Spain through our regular Australian Securities Exchange announcements and our communications via social media. Thank you and Gracias to our readers. Regards Kevin MacNeill Chief Executive Officer Mt Carbine Tungsten Mine’s Andy White Open Pit EQ Resources Limited Annual Report 2023 3

Health & Safety Safety Safety remains a top priority in the Australian mining industry due to its high-risk nature, necessitating rigorous safety protocols to safeguard workers, communities, and the environment. Upholding safety standards ensures the well-being of stakeholders and supports the industry’s reputation and sustainability. This commitment to safety is integral for the sector’s success and global competitiveness. In the 2023 financial year, the Company showed significant safety efforts: 5,697 “Take 5 Personal Risk Assessments” were undertaken, alongside 80 Job Safety and Environment Analysis (JSEA) assessments, 24 procedural reviews, and bi-monthly toolbox meetings. Meanwhile, the Mt Carbine Operations achieved a milestone of 600 days without a Lost Time Injury (LTI), which has now been reset and currently standing at 44 days LTI-free. The period saw 7 LTIs, 9 minor medical treatments, and 9 cases addressed with first aid, the Company is dedicated to improving safety practices and ensuring the wellbeing of its employees. Operating and Financial Review Training Over the course of the reporting period, we prioritised employee development and safety through a number of extensive training programs as follows: − 17 employees completed Working at Heights (WAH) training. − 14 employees received training in Confined Space Entry and Work. − 14 employees underwent Gas Testing Atmosphere training. − 21 employees trained in First Aid & CPR. − 2 employees achieved Advanced First Aid certification. − 1 employee took on the role of ICAM Lead Investigator. − 1 employee completed Diploma of Surface Operations − 10 employees secured Heavy Rigid Truck licenses. − 17 employees completed Supervisor “S123” training. − 2 individuals trained in drug and alcohol testing programs. − Regular site-wide substance testing conducted. − 391 employees received Verification of Competency (VOC) certifications. − 1 employee obtained a Certificate IV in Workplace Health and Safety. Figure 1 - Proactive Safety Indicators. 5,697 Take 5 Safety Assessments 80 JSEA Job Safety Environment Analysis 24 Toolbox Talks 2 Prestart safety meetings per day PROACTIVE SAFETY INDICATORS 4 EQ Resources Limited Annual Report 2023

In the past couple of months, the Company has introduced several key changes to enhance safety and communication within our workforce: − Photo identification Personal Danger tags for our workforce. These tags are now used when isolating machinery and plant on-site, adding an extra layer of safety to our operations. − Installation of noticeboards across the site to facilitate improved communication. These noticeboards serve as a central hub for sharing important updates, announcements, details about upcoming training sessions, information about recent changes, and other relevant safety initiatives that our workers need to stay informed and engaged. Safety Initiatives at the Mt Carbine Mine. These initiatives are only a few examples of the safety initiatives implemented by the Company during the reporting period to reinforce its ongoing commitment to prioritising the safety and well-being of its employees while fostering a culture of transparency and effective communication. Mt Carbine employees undertaking on-site training. EQ Resources Limited Annual Report 2023 5

Mt Carbine Operations EQR & Golding Execute Mining Contract for Mt Carbine The execution of the mining contract between EQ Resources Limited and Golding Contractors Pty Ltd (“Golding”) on 29 May 2023 marks one of the Company’s most significant achievements this year, with promising prospects for both companies. This partnership is mutually beneficial and includes a strategic approach to enhance our ties. Initially, the contract outlines a 12-18 month period based on rates and a cost-plus model to establish a site-specific baseline cost. Following this phase, the contract will transition to rise-and-run matrix rates, considering factors such as fleet composition and material type. This forward-looking strategy ensures this collaboration evolves to be efficient and costeffective as we gain a deeper understanding of our mutual operations. The committed contract period of 70 months, with an estimated value of $179 million, underscores the long-term commitment and shared vision between EQR and Golding. Throughout this period, substantial material movement is anticipated, including the excavation of approximately 16.3 million tonnes of mine waste material, 6.0 million tonnes of mined ore, and 2.9 million tonnes of low-grade stockpile material. By dividing the contract into two phases, both parties demonstrate a proactive approach to managing risk in the unique context of mining hard rock tungsten. This strategy not only helps de-risk the project but also ensures the successful delivery of the project scope without the need for significant risk pricing adjustments. It also solidifies our relationship, laying the foundation for a strengthened and prosperous partnership between EQR and Golding (refer ASX Announcement ‘EQR & Golding Execute Mining Contract for Mt Carbine’ dated 29 May 2023). Golding’s Mining Project Manager, Steven Page, and Mining Superintendent, Craig Williams, with some of their newly mobilised fleet. The Mt Carbine and Golding team have optimised the site layout to facilitate increased production and workflow activity. A streamlined delivery schedule for additional equipment facilitates the acceleration of production ramp-up. Operating and Financial Review continued 6 EQ Resources Limited Annual Report 2023

Reopening of the Andy White Open Pit Commencement of open cut mining operations. Another significant achievement for the year involved the dewatering of the Andry White open pit which was completed during the last quarter of the 2022 calendar year. Open cut mining activities kicked off with the inaugural blast undertaken on 24 June 2023, promptly followed by the commencement of ore deliveries. The excitement surrounding this significant and historic milestone was palpable as EQR embarked on the next phase of its operations. Golding and EQR are working collaboratively to ramp-up operations in line with forecast expectations in an accretive and sustainable manner. Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia, July 2021. Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia, July 2023. CEO, Kevin MacNeill, inspecting the Andy White open pit. Mt Carbine Expansion This year has truly been a thrilling and transformative journey for the Mt Carbine Mine. It has witnessed the successful completion of major capital projects that has reshaped the operational landscape. The Company has embarked on a remarkable path of expansion, optimisation and growth across all sections, marking a significant milestone in the history of Mt Carbine. These strategic initiatives have not only enhanced the site’s operational capabilities but have also fortified our commitment to excellence and innovation. As we reflect on this exceptional year, we are excited about the future opportunities in the continued pursuit of our mission to deliver exceptional value to our stakeholders. − Earthmoving works initiated in Q1 for concrete pad preparation for Phase 2 Capital Works Program. − Service road improvements and groundwork around water storage facilities completed by MC Group. − Improved entrance and new parking area at Gravity Plant. − New service areas for heavy machinery in each operational area. − Upgrades completed for service access roads and dump truck roadways in May 2023. − Significant earth moving work planned for Golding’s infrastructure needs. − New inventory warehouse established housing spare parts, consumables, and equipment. − New inventory management system rollout planned from July to December 2023. − Electrician’s storage, office, and workspace set up. − New fabrication workshop to be set up postfinancial year end with estimated completion by Q1 2024. − New Sandvik Crushing Plant detailed design is underway as per the BFS which is set for commissioning in early 2024. EQ Resources Limited Annual Report 2023 7

All expansion works required the services of specialised contractors such as electrical engineers, civil construction, fabrication, concreting, crane operations, and other engineering services. All contractors are sourced locally wherever possible, encapsulating the Company’s strong commitment in supporting the local economy. Commissioning of the Jaw Crusher for the Crushing Plant In July 2023, a mobile jaw crusher was integrated into the crushing circuit to reduce the oversized -700mm ore from the open pit blasting to a more manageable -170mm fraction, significantly reducing the amount of oversize material. It has also resulted in the volume of oversize material separated during the initial screening phase of the circuit being dramatically minimised with feed input optimised. Crushing and Screening Plant with the Cone Crusher at the forefront. Commissioning of TOMRA 3 During the last quarter of 2023 financial year, a third XRT Ore Sorter (‘Tomra 3) was acquired. Over the past 12-months of operating and sorting the LowGrade Stockpile (“LGS”) material, the Company has seen an average of 10-12% mass yield from the feed to concentrate and has optimised the processing parameters to maximise tungsten recoveries. Since starting to process the primary ore from the Andy White open pit an increased mass yield ranging between 15-18% on the open cut ore has been achieved, with stable WO3 recoveries above 95%. TOMRA 3 was commissioned in July 2023 and is in full operation at the time of this report. Operating and Financial Review continued With the commencement open pit ore deliveries, the operations have experienced a higher proportion of material in the sortable fraction, which is an overall benefit to the operation due to the low-cost nature of XRT Ore Sorting. TOMRA 3 will be put in place of the original Pilot XRT Ore Sorter (“TOMRA 1”) which will undergo refurbishment works before being placed back into the circuit. Tomra 3 has the advantage of newer programming and increased efficiencies, therefore the operation is expecting to see immediate benefits to production. Whilst the preparation, receipt and installation of TOMRA 3 and replacement of TOMRA 1 led to downtime during Q4 the subsequent increases in concentrate outputs has far outweighed this lost time. Newly commissioned TOMRA 3 Ore Sorter. Gravity Plant Upgrades This year, significant enhancements were made to the Gravity Plant, boosting operational efficiency: − First three aging conveyors replaced with a more efficient model, enhancing feed throughput. − Introduction of a cone crusher circuit, replacing the rolls crusher, improving the Plant’s reliability and performance. − Reduced reliance on external crushing contractors by internally processing 40mm sorter product, enhancing self-sufficiency and offering cost savings. − Revamped the Plant’s feeding area with new conveyors and ramps, optimising material handling. − New Schenk Dewatering Screen and larger rolls crushers installed to double the Plant’s capacity. − A second Mineral Jig, set for commissioning in Q3 2023, will further enhance capacity. − Post-year end, eight concentrate shaking tables were added, increasing output, with two stacks of four shaking tables planned to optimise mineral separation processes. These upgrades underscore our dedication to innovation and establish us as a forefront tungsten producer for the Western World. 8 EQ Resources Limited Annual Report 2023

Eight additional shaker tables have been installed and commissioned to increase processing capacity. Laboratory Upgrades and Core Shed Relocation. The laboratory’s operational scope at Mt Carbine has expanded significantly with the commencement of open cut operations. The Company has developed and implemented a quality assurance system with regular samples sent to external third-party laboratory, Australian Laboratory Services (ALS), for validation. With 20% in-house quality checks and 10% of production and grade samples sent to ALS, as part of the Company’s quality assurance program, the technical team ensures that the calibration of the laboratory equipment is on point. Previously the on-site laboratory was manned by a single employee who was responsible for daily production samples to be sent weekly to ALS in Brisbane for assay, with a typical turnaround time of 4-5 weeks and between 80 to 150 samples being submitted per month. Now, EQR’s newly equipped laboratory can process and assay on average 80 samples per day with a 24-hour turnaround on results. This has led to a greater detail in grade and plant control for variations in material and processes enabling the operations team to make more informed and timely decisions during production. Newly constructed laboratory and core shed. EQR Corporate Office - Mareeba The EQR Group now has a presence in Mareeba, with the opening of it’s Corporate Office in June 2023. Mareeba is located approximately 1 hour from Mt Carbine and together with other local communities, supply a large percentage of the Mt Carbine Mine’s daily operational requirements. The Corporate Office overseas the functions of finance, accounts payable/receivable, payroll and general administration functions for the Mt Carbine Mine Site and currenlty employs five full-time employees from the Mareeba and Atherton Tablelands region. Mareeba Office Facade. EQ Resources Limited Annual Report 2023 9

Figure 2 - Mt Carbine Process Flow & Beneficial Re-Use. Operating and Financial Review continued 10 EQ Resources Limited Annual Report 2023

Crushing, XRT Sorting & Gravity Plant Activities The operation successfully transitioned from primarily utilising material from the LGS to processing primarily tungsten-rich open cut ore. Since the beginning of the open pit operations, the shift yielded positive outcomes for the operations team, who focused on enhancing the recovery rates of the ore processed through the XRT Ore Sorter Plant resulting in higher grade feed into the Gravity Plant. A significant increase in production has been seen since the introduction of primary ore from open cut mining. The positive results from the processing of the primary ore has also seen tungsten recovery rates higher than expected which supports strong production trends going forward. EQR’s planned ramp up in production is on target with production records continuously being achieved. Grade control measures are now playing a pivotal role in our mining operations, ensuring the consistent quality of ore feed grades entering the crushing plant. EQR’s geology team plays an active role in delineating the ore zones in the open cut and ensuring ore deliveries are received at their designated ore bays prior to processing. Furthermore, we integrate cutting-edge technology into our grade control efforts through the utilisation of aerial drone imagery. These aerial surveys provide a comprehensive view of the mining area, aiding in the identification of key geological features and potential variations in ore grade distribution or zone delineation. This real-time visual data empowers our team to make rapid adjustments to our daily planning, optimising the extraction process and ensuring that the feed delivered for processing aligns with planning. Crushing Plant The commissioning of the Phase 1 Crushing Plant was concluded during the year, and it now operates on a 24/7 roster. Significant to the crushing operations was the implementation of a slurry line to efficiently transport fines directly from the Crushing Plant to the Gravity Plant. This strategic move substantially reduces the need for double handling of -6mm materials, optimising our operations, and curbing machinery operations hours. EQ Resources Limited Annual Report 2023 11

Efficient transportation of fines from the crushing Plant to the Gravity Plant has been achieved through the successful implementation of slurry lines. In parallel, our commitment to achieving the highest standards is reflected in the ongoing training efforts for crusher-specific operations, aimed at equipping our crews across all plants, with plant-specific specialised skills. As part of our evolving operational strategy, six employees have transferred to Golding. Originally hired as operators within EQR, they will now play a pivotal role in the contractor’s load and haul operations, facilitating the mining of the open cut ore. Operating and Financial Review continued 12 EQ Resources Limited Annual Report 2023

- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Feed Material Produced in Tons Fines (Hauled + Pumped) Sorter Feed (est) - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Ore Sorter Concentrate Production (Tonnes) Figure 3 - Total Head feed in the Crushing Plant for 2023. Ore Sorter Plant The Ore Sorter Plant has recently received a new XRT sorter “TOMRA 3” to replace the original “TOMRA 1”. TOMRA 3 has been successfully commissioned and is delivering improved availability rates and feed production consistency. Furthermore, the installation of a new conveyor belt for sorter product has expanded our output stockpile capacity, consequently reducing the need for excessive machinery traffic to sustain production levels. A noteworthy transformation within the Ore Sorter Plant involves the conversion of the dry screen into a wet screen. This adaptation allows for the efficient pumping of fines that were traditionally loaded and hauled after being collected during the screening process of the 40mm material. This tungsten-rich material is now seamlessly pumped directly to the Crushing Plant and subsequently forwarded to the Gravity Plant, thereby minimising the handling of feed and enhancing operational efficiency. Parallel to our approach at the Crushing Plant, operators assigned to the Ore Sorter Plant undergo continuous training to specialise their skill sets for their specific roles within the plant. This initiative aims to elevate the proficiency of our on-site workforce. Over the past year, the Sorter Plant has achieved an average yield of 10.52%, processing 405,000 tonnes of feed and producing 42,808 tonnes of tungsten-bearing sorter concentrate for further crushing and processing through the Gravity Plant. Gravity Plant The diligent execution of continuous improvement programs during the previous financial year has yielded substantial benefits in the current financial period, resulting in an impressive average running time of 78%. This demonstrates significant progress from the 72% achieved the previous year. The Gravity Plant has had a record year with over 362,000 tonnes of -6mm head feed through the Plant over the target of 336,000 tonnes. This head feed consisted of -6mm fines material and the XRT Sorter concentrate. - 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Gravity Plant W03 Equ. Concentrate Production (t) 50% WO3 Equiv September Forecast - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gravity Plant Head Feed Throughput (t) Head Feed Target Head Feed Figure 5 - Gravity Plant Head Feed for 2023. Figure 6 - Gravity Plant W03 Concentrate Production for 2023. *Based on wet weight off the scale. - 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Gravity Plant W03 Equ. Concentrate Production (t) 50% WO3 Equiv September Forecast - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gravity Plant Head Feed Throughput (t) Head Feed Target Head Feed Despite ongoing success, the operational landscape presented its share of challenges over the year. Shipping costs escalated beyond expectations, leading to considerable delays in equipment deliveries. While the operation remained unhampered by enforced shutdowns, logistical complexities persisted in procuring spare parts and additional equipment, causing occasional delays in expansion initiatives. In response, our on-site operational team bolstered inventory facilities and slightly increased inventory holdings to mitigate supply disruptions. Where possible and feasible, the Company sources equipment from local equipment providers to support the community and minimise freight expenses. Figure 4 - Ore Sorter Concentrate Production for FY 2023. - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Feed Material Produced in Tons Fines (Hauled + Pumped) Sorter Feed (est) - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Ore Sorter Concentrate Production (Tonnes) Total Feed Material Produced (t) Ore Sorter Concentrate Production (t) Gravity Plant Head Feed Throughput (t) Gravity Plant WO3 Equ. Concentrate Production (t) EQ Resources Limited Annual Report 2023 13

These challenges have fostered an expanded network of suppliers and industry vendors building on historic relationships. Notably, our workforce has grown to over 95 employees, a significant increase from 65 the previous year, with a strong focus on employing local talent from the surrounding communities. The employee numbers have grown to accommodate increased production and administration requirements associated with the operation. We take pride in training and empowering local individuals, thereby reinvesting in the community. Operations at Mt Carbine operate on a 24/7 basis ensuring maximum production output. In accordance with the Offtake Agreement between the unincorporated JV, between the Company and CRONIMET Australia Pty Ltd, and CRONIMET Asia Pte Ltd, by the end of the financial year CRONIMET Asia has taken all concentrate produced on-site this year. Individual production lots are tested against mutually agreed quality parameters, including WO3 and moisture content. There continues to be a strong demand in the global market for the tungsten concentrates produced at Mt Carbine. Material Business Risks The Group continues to assess and manage various business risk with the potential to have material impact on the Group’s operating and financial performance and its ability to successfully achieve its corporate objectives. Section 14 of the 2021 Bankable Feasibility Study defines the Group’s risk framework which: − Describes the process for identifying risks and opportunities; − Describes the process for assessing risks using consistent management guidelines; − Identifies and assesses the material risks and defines appropriate measures to control these risks; − Establishes a process to ensure that risks and opportunities continue to be identified and compliance obligations satisfied; and − Ensures that the process is communicated to relevant stakeholders. The matters listed below are not listed in order of importance and are not intended to be an exhaustive list of all the risks and uncertainties affect the business. Market Risk The demand for, and the price of, tungsten, is highly dependent upon on a variety of factors, including international supply and demand, actions taken by governments and global economic and political developments. EQR’s operational and financial performance, as well as the economic viability of the Mt Carbine Mine, is heavily reliant on the price of tungsten. Operating and Financial Review continued Any sustained low price for tungsten may adversely affect EQR’s business and financial results, its ability to finance, and the financing arrangements for its future activities or its planned capital expenditure commitments. Key factors which affect the price of tungsten (many of which are outside the control of EQR) include, among many other factors, the quantity of global supply as a result of the commissioning of new mines and manufacturing facilities, and the decommissioning of others; political developments in countries which produce and consume material quantities; and the weather in such countries to name only a few. Given the range of factors which contribute to the price of tungsten, and the fact that pricing is subject to negotiation, it is difficult for EQR to predict with any certainty the prices at which tungsten will be sold. The effect of changes in assumptions about future prices may include, amongst other things, changes to Mineral Resources and Ore Reserves estimates and the assessment of the recoverable amount of EQR’s assets. Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves are estimates of mineralisation that have reasonable prospects for eventual economic extraction in the future, as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). JORC Code compliant statements relating to EQR’s Ore Reserves and Mineral Resources are estimates only. An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. In addition, by their very nature, Resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change and may be updated from time to time. This may result in alterations to mining plans or changes to the quality or quantity of EQR’s Ore Reserves and Mineral Resources, which may, in turn, adversely affect EQR’s operations. Mineral production involves risks, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate. No assurance can be given that the anticipated tonnages or grade of minerals will be achieved during production or that the indicated level of recovery rates will be realised. Additionally, material price fluctuations, as well as increased production and operating costs or reduced recovery rates, may render any potential mineral Resources or Reserves 14 EQ Resources Limited Annual Report 2023

containing relatively lower grades uneconomic or less economic than anticipated, and may ultimately result in a restatement of such Resource or Reserve. This in turn could impact the life of mine plan and therefore the value attributable to mineral inventory and/or the assessment of recoverable amount of EQR’s assets and/or depreciation expense. Moreover, short term operating factors relating to such potential mineral Resources or Reserves, such as the need for sequential development of mineral bodies and the processing of new or different mineral types or grades, may cause a mining operation to be unprofitable in any particular period. In any of these events, a loss of revenue or profit may be caused due to the lower than expected production or ongoing unplanned capital expenditure in order to meet production targets, or the higher than expected operating costs. EQR seeks to manage and minimise this risk through its existing risk management framework including an external audit process for its Mineral Resources and Ore Reserves. Operational Risk At the Mt Carbine Mine operational risks can cause disruptions to operations, failures in plant and equipment, difficulties in obtaining replacement equipment and difficulties with product separation and screening. The Mt Carbine site is a mature operating site that has been in operation since February 2020. EQR’s CEO, Kevin MacNeill, has successfully navigated the Company’s from a junior explorer to a fully-fledged ming operation with the commencement of open cut mining operations in late June 2023. Kevin has over 30 years’ of experience in managing mining operations through North America, Europe, and Africa. This experience has aided the development of a cohesive, hands-on management approach and operations team development while restricting the reporting chain to ensure employees are empowered in their roles for efficient decision making and optimal outcomes. Other risks include, and are not limited to, weather, availability of materials, availability and productivity of skilled and experienced workers and contractors, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the costs of labour, consumables, spare parts, plant and equipment IT failures or disruptions, unanticipated changes in government regulation and risks associated with increased global uncertainty and/or global events such as the COVID-19 pandemic (including the national or regional governmental response to such events). Any inability to resolve any unexpected problems relating to these operational risks or adjust costs profiles on commercial terms could adversely impact continuing operations, Mineral Resources and Ore Reserves estimates and the assessment of the recoverable amount of EQR’s assets. EQR seeks to manage and minimise this risk through its existing risk management framework including the implementation of an Integrated Health and Safety Management System that protects employees physical safety and mitigates operational risks which are guided by the Integrated Management System (IMS) which addresses the intended outcomes of ISO 9001:2015 Quality Management Systems, ISO 14001:2015 Environmental Management Systems and ISO 45001:2018 Occupational Health and Safety Management Systems. Environmental Risks (including climate change) EQR must comply with a range of environmental performance and reporting requirements, many of which are conditions of its mineral exploration and mining activities. There is a risk that the Company may not be able to achieve the financial performance or outcomes disclosed herein if it fails to comply with those environmental performance and reporting requirements or if the requirements change in the future and the Company is no longer able to comply with the requirements or must incur material unplanned expenditure in order to remain compliant. EQR seeks to manage and minimise this risk through its existing risk management framework and through detailed environmental management plans and systems. Social Risks EQR is exposed to social risks as a result of the many stakeholders who are involved in its operations including but not limited to employees, contractors, local community members residing in areas where the Company operates, governments and government agencies (local, state and federal) as well as customers and suppliers. EQR is subject to reputational damage as well as potential claims for damages as a result of any harm or loss sustained by any stakeholder as a result of the actions by the Company and/or and its representatives. There is a risk that the Company may not be able to achieve the financial performance or outcomes disclosed herein if it incurs reputational damage or significant claims for damages. EQR seeks to manage and minimise this risk through its existing risk management framework, including Board approved policies on stakeholder management and through established stakeholder consultation processes. EQ Resources Limited Annual Report 2023 15

Governance Risks EQR must comply with a range of governance requirements which are conditions of its listing on the ASX and of its mineral exploration and mining activities. There is a risk that the Company may not be able to achieve the financial performance or outcomes disclosed herein if it fails to comply with those governance requirements or if the requirements change in the future and the Company is no longer able to comply with the requirements or must incur material unplanned expenditure in order to remain compliant. EQR seeks to manage and minimise this risk through its existing risk management framework including Board approved governance policies which are subject to regular review. Quarry Activities In the challenging and competitive landscape that characterises the Quarrying industry, the Mt Carbine Quarry embraced strategic advancement, precision operations, and equipment upgrades to increase its competitive advantage. Aligned with the Queensland Government strategy of repurposing waste rock from mining projects, the Mt Carbine operations beneficially re-uses mine waste to make a diverse array of products, including road bases, drainage aggregates, bituminous sealing aggregates, and robust armour rock to name only a few. A notable aspect of the Compamy’s progress this year was characterised by a strategic focus on optimising its equipment resources. Acknowledging the dynamic needs of the site’s operational activities, the Company initiated the leasing of assorted crushing equipment, at different stages, to fulfil its contractual obligations. This deliberate strategy enabled the Company to seamlessly align project demands. A crucial element to the Quarry’s continued success is the cultivation of strong alliances with prominent clients such as Boral Asphalt, Mareeba Shire Council, and Hall Contracting. Through these partnerships, the Quarry will continue to provide high-quality quarry material to regional infrastructure and development projects. Some of the key projects completed during the year under review are set out below: − Boral Asphalt: Northern Roads Reseal - Pormpuraaw. − Mareeba Shire Council: Local Euluma Creek Road, Julatten Road Rebuild following damage sustained during last year’s wet season. − Hall Contracting: Newell Beach Boat Ramp Amour Rock − Yorkey’s Knob Boat Ramp Euluma Creek Roadworks. Julatten Road Rebuild. Operating and Financial Review continued 16 EQ Resources Limited Annual Report 2023

Newell Beach Boat Ramp. Yorkey’s Knob Boat Ramp. The Quarry team is looking forward to building on the momentum and success of the previous year, leveraging upon the strong relationships built. The quarry will also continue to provide quarry materials to the construction of the Phase 2 Crushing Plant and other on-site infrastructure projects. For more information, please head to the Mt Carbine Quary’s website at https://mtcarbinequarries.au/. The Mt Carbine Tungsten Mine’s tailings dam’s clean water remains host to a vast array of indigenous fauna and flora. Sustainability at EQ Resources Sustainability Overview EQ Resources’ ESG Early Adoption Profile EQR recognises the significant potential of an Environmental, Social, and Governance (ESG) focus. As early adopters, it aims to set industry benchmarks among junior miners through its comprehensive ESG program. Commitment to Sustainable Resource Development EQR’s core commitment is sustainable resource development, ensuring economic growth without harming the environment. EQR values Australia’s biodiversity and prioritises conservation efforts. Through its ESG program, it actively engages in community partnerships to support our environmental and social commitments. EQ Resources Limited Annual Report 2023 17

Leadership in ESG EQR has taken significant strides in leading the Australian junior mining sector by developing and sharing its Sustainability (ESG) Program. It is committed to the ongoing maturation of this program, recognising that sustainability is an evolving journey that requires constant dedication. Environmental Responsibility Throughout the year, EQR partnered with Cairns based firm, Natural Resource Assessments (NRA) Pty Ltd, to conduct various component studies and oversee the design and upgrade of existing infrastructure to meet global sustainability standards as it moved to recommence open-pit mining at the Andy White open pit. Putting Sustainability and ESG commitments into action has been achieved through the Company’s continued partnership with Turner & Townsend JukesTodd (‘TTJT’), the EQR Management Team and its ESG Committee. Comprehensive Studies and Ongoing Commitments Several critical studies were successfully conducted to support the Company’s open-cut mining plans and project risk mitigation. Some of the key activities that remain ongoing include: − Noise, Air & Vibration Studies: Minimising local community disruption. − Water Management Plan Update: Responsible water usage and conservation. − Hydrogeological Study: New data from monitoring wells for better groundwater understanding. − Blast Management Plan: Safe and efficient blasting. − Waste Rock & Tailings Management Plan: Responsible disposal and management. − Flora and Fauna Studies: Preserving local biodiversity. − Water Engineering Works: Upgrade Mt Carbine water storage facilities. − Stakeholder Engagement Program: Based on a comprehensive heritage site review around Mt Carbine. − Progressive Rehabilitation and Closure Plan (PRCP) Plan: Outlining EQR’s proposed rehabilitation strategy to authorities, governments, and communities. A Focus on Community and Social Responsibility The Company’s sustainability commitment extends beyond compliance, emphasising responsible resource development benefiting the environment and society. As EQR’s ESG program matures, it acknowledges its community impact and has initiated partnerships in 2023 to offer meaningful support. EQR Sustainability and ESG Journey Embedding Sustainability and ESG into Our Foundations At EQR, management have proactively integrated sustainability and ESG principles into the core of its operations. The deliberate approach of maturation through the 2023 year has ensured alignment with existing sustainability frameworks and scope to evolve with future reporting requirements. EQR’s journey began with a name change reflecting its core values and has since achieved strategic milestones, partnerships, and initiatives showcasing its commitment to sustainability. Explore the timeline below to witness this transformation. Key Milestones: Sustainability and ESG Journey Timeline 2019: EQR adopts a new name that reflects its core values. 2021: A dedicated ESG focus becomes integral to its operations. 2021: Engagement with TTJT to establish the ESG Strategy baseline. 2021 Q2: Engagement with ARTEH on Scope 1 & 2 Emissions Tracking tool development. 2021 Q4: Stakeholder sentiment survey conducted. 2022 Q1: Adoption of United Nations (‘UN’) Sustainable Development Goals (‘SDGs’). 2022 Q1: Aligning ESG priorities with stakeholder sentiments and the Company values. 2022 Q2: Adoption of TTJT ESG Categorisation Framework. 2022 Q3: Frist quarterly ESG Committee Meeting held. 2022 Q4: Developed/reviewed policies. Operating and Financial Review continued 18 EQ Resources Limited Annual Report 2023

2022 Q4: Initiatives workbook developed for tracking and planning. 2023 Q1: Development of an ESG reporting framework, including a symbol communicating EQR's values. 2023 Q1/2: Establishment of a Mt Carbine based ESG Sub-Committee to drive community-based initiatives. 2023 Q2: Development of EQR's ESG Roadmap outlining quarterly objectives for the year. 2023 Q2: Net Zero Readiness Assessment conducted. 2023 Q2: Investigation of potential disclosure framework alignment commenced: International Council on Mining and Metals (‘ICMM’), Global Reporting Initiative (‘GRI’), Task Force on Climate-Related Financial Disclosures (‘TCFD’). 2023 Q2/3: Development of Sustainability landing page for EQR website. 2023 Q3: Revision of United Nations SDGs. 2023 Q3/Q4: Sustainability landing page for EQR website launched. 2023 Planned - Q4: Gap analysis on metric disclosure/reporting framework alignment (ICMM,GRI, TCFD,) 2023/4 Planned - Q4/Q1: Commencement of a decarbonisation strategy/roadmap for Mt Carbine. 2023/4 Planned - Q4/Q1: Second Stakeholder Sentiment Survey to be undertaken. 2024 Planned: Inclusion of additional metric disclosures in the 2024 Annual Report, progressing towards GRI/TCFD and possibly ICMM compliance. Our ESG Program EQR employs the TTJT ESG Categorisation Framework (refer Figure 7) to guide the maturation of its ESG program. This program is rooted in the Company’s core values and purpose, aligning its foundational commitments with tangible metrics for future reporting whenever possible. The Company is dedicated to the ongoing enhancement of its ESG policies and programs, recognising the imperative of adaptability as it grows and evolves. These policies undergo regular review to ensure practical application and adherence to its values, as well as meeting the expectations of its valued shareholders. Strategic Positioning Building on Our ESG Foundation EQR continues to strengthen its ESG foundation with insights from leadership workshops and stakeholder surveys. ESG principles are woven into every aspect of its operations, ensuring ongoing improvement. Figure 7 - TTJT ESG Categorisation Framework. EQ Resources Limited Annual Report 2023 19

A Focused Approach EQR’s strategic approach remains consistent: Environmental Excellence: Embracing eco-friendly practices, technology, and efficient resource extraction. Social Responsibility: Leading in sustainable communities, diversity, and local employment. Governance and Transparency: Going beyond compliance with an emphasis on transparent reporting. Unlocking Potential EQR’s Leadership Team is committed to advancing its ESG program, including circular economy projects and community development. Stakeholder-Centric Evolution Stakeholder surveys shape EQR’s ESG program direction. A 2024 survey and gap analysis will ensure alignment with industry best practices. Community Engagement EQR engages closely with its local and regional communities as it develops the Mt Carbine Tungsten Mine, reflecting its commitment to align actions with values. UN SDG Alignment EQR continually refines its alignment with the United Nations Sustainable Development Goals (UN SDG). Updated alignments reflect its commitment to specific UN SDG targets, with plans for a 2024 survey and gap analysis to further enhance alignment. EQR currently aligns with the following UN SDGs, addressing one to four specific targets in each category, guided by the TTJT alignment framework. UN SDG’s that EQR aligns to. Materiality Assessment In 2021, EQR conducted an ESG Materiality Assessment during the Mt Carbine Mine expansion Pre-feasibility Study. Surveying key stakeholders, it identified critical areas guiding EQR’s ESG strategy. Regular assessments adapt to evolving stakeholder priorities, with an upcoming Stakeholder Sentiment Survey planned for the 2024 financial year. Operating and Financial Review continued 20 EQ Resources Limited Annual Report 2023