ANNUAL Report June 2023 Directors’ Report 11 (f) First drawdown equalling to 30% of the awarded $6 million grant received from the Federal Government’s Critical Minerals Accelerator Initiative (CMAI). The CMAI co-investment was utilised to implement the scope defined in the Company’s Bankable Feasibility (refer ASX announcement “EQR Receives First Draw Down from $6M Federal Grant” dated 2 December 2022). The second draw down of $3.96 million was received as announced on 2 June 2023 (refer ASX announcement “EQR Completes Second Draw Down from $6M Federal Grant). (g) First assays from the Phase 2, 2022 diamond drilling program continue to confirm high-grade tungsten mineralisation zones west of the Andy White Open Pit. The Iron Duke northern extension hole confirmed high-grade Scheelite zones and marks a significant discovery located from soil anomalies (refer ASX announcement “Drilling Results Highlight Significant Iron Duke Discovery and Potential for Additional Pit Expansion” dated 13 February 2023). Additional 4 holes from the Phase 2, 2022 diamond drilling program showed a significant size high-grade mineralised system emerging 150m west of the updated Mt Carbine BFS Pit, remaining open along strike and depth. Assays contain the highest per meter tungsten (WO3 contained) intersected outside the BFS Pit with Hole EQ030 having 10-times the grade of the Open Pit Ore Reserve as reported (0.33% WO3) (refer ASX Announcement “Drilling Confirms High-Grade Mineralised System in Western Extension” dated 27 February 2023). (h) Environmental Authority secured to resume open cut mining at Mt Carbine (refer ASX announcement “EQR Secures Environmental Authority to Resume Open Pit Mining at Mt Carbine” dated 6 March 2023). (i) Mt Carbine Mining Leases ML 4867 and ML 4919 were renewed for a further 19 years (refer ASX announcement “Mt Carbine Mining Leases Renewed for 19 Years” dated 24 March 2023). (j) Updated Mt Carbine Mineral Resource Estimate (MRE) confirms an increase of 64% metal contained in Indicated Resources (In-situ), adding ~2.11 million mtu. Global MRE inventory went up by 28.6% for a total increase of 2,136,338 mtu. The extension drilling around the Dyke West Zone and Northern Iron Duke Zone was principally responsible for the significant increase in metal inventory at Mt Carbine (refer ASX announcement “64% Increase of Mt Carbine Indicated Resources (In-Situ)” dated 4 April 2023). (k) Updated Ore Reserves for the Mt Carbine Tungsten Project following the 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 (refer ASX announcement “43% Increase in Mt Carbine Ore Reserves from Western Pit Extension” dated 18 May 2023). (l) Mining Services Agreement executed with Golding Contractors Pty Ltd for the restart of open pit mining operations at Mt Carbine (refer ASX announcement “EQR & Golding Execute Mining Contract for Mt Carbine” dated 29 May 2023). (m) $2.3 million tax R&D Tax refund received as a result of the Company’s extensive R&D programs conducted in preparation for the Open Cut restart from the end of June 2023 (refer ASX announcement “EQR Receives $2.3M through R&D Tax Refund” dated 20 June 2023). (n) First blast on 25 June 2023 restarts Open Cut production at Mt Carbine (refer ASX announcement “First Blast at Mt Carbine Restarts Open Cut Production” dated 26 June 2023). EQ Resources Limited Annual Report 2023 53
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