ANNUAL Report June 2023 Notes to the Consolidated Financial Statements 43 15. KEY MANAGEMENT PERSONNEL COMPENSATION 2023 $ 2022 $ Short-term employee benefits 533,652 618,347 Post-employment benefits - 1,806 Share based payments 120,830 292,383 Balance at the end of period 654,482 912,536 16. CONTINGENT LIABILITIES The Group has provided guarantees totalling $1,172,598 in respect of mining exploration tenements and environmental bonds. These guarantees in respect of mining and exploration tenements are secured against deposits with the relative State Department of Mines. The Company does not expect to incur any material liability in respect of the guarantees. 17 COMMITMENTS Exploration Licence Expenditure Requirements Queensland The Queensland Government has approved a number of changes to Exploration Permits under the Natural Resources and Other Legislation Amendment Act 2019 (known as NROLA Act). This Act commenced in May 2020 which results in a change from an expenditure-based approach upon which a company’s compliance with its licence conditions will be assessed on an outcomes-based approach. New South Wales In November 2021 EQ Resources Limited entered into a binding Farm-In and Joint Venture Agreement with Sozo Resources Pty Ltd (“Sozo”) whereby Sozo can earn up to an 80% interest in EQR’s 100% owned NSW projects, Crow Mountain (EL6648) and Panama Hat (EL8024), by completing expenditure of $1.6 million over 4 years as follows: Stage 1 – Sozo to complete $100K of expenditure within 9 months from the Agreement Commencement Date; Stage 2 – Sozo to spend a further $750K of expenditure within a further 24 months to earn a 49% interest. If Sozo elects to continue sole funding exploration expenditure at the end of Stage 2, it will have earnt a further 2% (51% in total) and a Joint Venture will be formed; and Stage 3 – Sozo to spend a further $750K of expenditure and complete a Scoping Study (as defined by the 2012 JORC Code) within a further 24 months to earn a further 29% (in total $1.6M for 80%). For further details refer to ASX announcement “EQR Farms-Out NSW Projects to Focus on Mt Carbine Tungsten Mine” dated 26 November 2021. This agreement ensures that the Company’s minimum expenditure requirements, as shown in the table below, will be satisfied in order to maintain each tenement in good standing. 2023 $ 2022 $ Payable not later than 1 year (NSW only) 118,000 118,000 Payable later than one year but not later than two years 160,000 278,000 278,000 396,000 It is likely also, that the granting of new licences and changes in licence areas at renewal or expiry will change the expenditure commitment of the Group from time to time. EQ Resources Limited Annual Report 2023 85
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