Reserves Update Based on the significant increases in Indicated Resources, the Company undertook to update the Reserves and released a new statement (refer ASX Announcement ‘43% Increase in Mt Carbine Ore Reserves From Western Pit, dated 18 May 2023). The re-modelling was undertaken by Optimal Mining Group who completed the previous Reserve Statements of 31 December 2021 and 16 September 2022. The consultants use the Spry Optimiser and have each time updated parameters to reflect changing labour, fuel and operating costs, etc. The highlights of the Reserve Statement are summarised here: − Open cut Ore Reserves tonnage increases from 3.54 million tons to 5.93 million tonnes. − 43% increase in contained WO3 in open cut Ore Reserves to 1.66 million mtu. − Additional Ore Reserves extend the open cut life-of-mine (excl. Low-grade Stockpile) to a total of 7 years, with the west and north remaining open for potential further extensions. − Only 19% of the In-Situ Mt Carbine Mineral Resources are currently in open cut Ore Reserves with drilling to continue to bring Inferred to Indicated Resources for further expansion. The Low-Grade Stockpile (“LGS”) has been partially depleted since the previous Ore Reserves update from September 2022. The Ore Reserves are current as of 15 May 2023 and account for all mining activities undertaken to this date. REGISTERED OFFICE: Level 4, 100 Albert Road, South Melbourne, VIC 3205 PRINCIPAL PLACE OF BUSINESS: 6888 Mulligan Highway, Mt Carbine Qld 4871 POSTAL ADDRESS: PO Box 1496, Mareeba Qld 4880 ABN: 77 115 009 106 (ASX: EQR) T: (07) 4094 3072 | F: (07) 4094 3036 | W: eqresources.com.au 43% INCREASE IN MT CARBINE ORE RESERVES FROM WESTERN PIT EXTENSION EQ Resources Limited is the 100% owner of the Mt Carbine Tungsten Mine near Cairns. Highlights: - Open cut Ore Reserves tonnage increases from 3.54mt to 5.93mt. - 43% increase in contained WO3 in open cut Ore Reserves to 1.66m mtu after the 64% increase in the Mt Carbine Indicated Resource as announced to the ASX on 4 April. - Additional Ore Reserves extend the open cut life-of-mine (excl. low-grade stockpile) to a total of 7 years, with the west and north remaining open for potential further extensions. - Only 19% of the In-Situ Mt Carbine Mineral Resources are currently in open cut Ore Reserves with drilling to continue to bring Inferred to Indicated Resources for further expansion. EQ Resources Limited ("EQR" or "the Company") is pleased to announce updated Ore Reserves for its Mt Carbine Tungsten Project (100% ownership) in Far North Queensland. The Company’s successful 2022 drilling campaigns and corresponding update of the Mt Carbine Mineral Resource Estimate formed the basis for the significant increase in the estimated open cut Ore Reserves tonnage and contained WO3 metal. The low-grade stockpile (“LGS”) has been partially depleted since the previous Ore Reserves update from September 2022. The Ore Reserves are current as of 15 May 2023 and account for all mining activities undertaken to this date. Table 1 - Mt Carbine Ore Reserves at 15 May 2023 Reserve Category ROM Tonnes (mt) WO3 (%) Contained WO3 (mtu) Open Cut - Proven - - - Open Cut - Probable 5.93 0.28% 1,660,400 Open Cut – Total 5.93 0.28% 1,660,400 LGS - Proven - - - LGS - Probable 9.77 0.075% 732,750 LGS - Total 9.77 0.075% 732,750 Figure 14 - Mt Carbine Ore Reserves at 15 May 2023. The Ore Reserves have been limited to a practical pit shell based on the current economic limits of the deposit. The updated mine plan considers the utilisation of larger mining equipment and a reduction in the amount of costly selective ore mining, which supports a further improvement of the project economics. An isometric view of the Ore Reserves pit shell is shown in the figure below. Figure 15 - Isometric view of Ore Reserves Pit Shell (Blue) compared with previous BFS Pit Shell designed in November 2022 (Green) Operating and Financial Review continued Refer to updated Mineral Resource & Reserves Statement on page 46. 32 EQ Resources Limited Annual Report 2023
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