Taken together, the Elmet agreement marks a significant milestone in EQR’s commercial strategy: it not only provides predictable cash flow visibility but also embeds the Company within the US critical minerals ecosystem at a time of heightened geopolitical focus on tungsten security of supply. For more information refer to: ASX Announcement 2nd September 2024: ‘Strategic Collaboration Agreed with Elmet Technologies’ ASX Announcement 12th November 2024: ‘Elmet Agreement Executed’ Corporate Activities Acquisition of 100% of the Mt Carbine Retreatment Joint Venture In July 2024, EQ Resources executed a Definitive Agreement with CRONIMET Asia Pte Ltd and CRONIMET Australia Pty Ltd to acquire CRONIMET’s remaining 50% interest in the Mt Carbine Retreatment Joint Venture. This transaction consolidates EQR’s ownership of the Mt Carbine operations, streamlining management and operational control. As part of the transaction, EQR agreed to issue new shares valued at US$7.5 million at a price of A$0.09 per share, representing a ~100% premium to the 15-day VWAP at the time. EQR also assumed all JV assets and liabilities, including obligations under the offtake agreement covering 25,000 tonnes of tungsten concentrate. In addition, CRONIMET will remain an important partner, taking a marketing role for Saloro’s production and receiving a 1% net marketing fee over five years. The acquisition not only secures 100% of the Mt Carbine Retreatment JV assets for EQR but also simplifies the commercial structure, enhances transparency in financial reporting, and positions the Company to fully capture the value of its processing and mining operations at Mt Carbine. See ASX announcement 5th July 2024 ‘Final Agreement to Acquire Mt Carbine JV from Cronimet’ Tungsten Metals Group Limited Acquisition Progressing On 18 November 2024, the Company announced the execution of a binding Heads of Agreement (HoA) to acquire 100% of the shares in Tungsten Metals Group Limited (TMG)—a public unlisted company—and its subsidiaries, along with Mr George Chen’s interest in Asia Tungsten Products Co Ltd (ATC). Collectively referred to as the TMG Group, the acquisition would provide EQR with full ownership of an established and globally significant downstream tungsten business. The TMG Group currently owns and operates the largest ferrotungsten (FeW) facility outside of China, located in Vietnam. With a potential nameplate capacity of 4,000 tonnes per annum of FeW, the plant is recognised for its scale, cost competitiveness, and efficiency. Its strategic positioning outside of China gives it unique advantages in serving global customers with reliable, diversified supply. The transaction is of high strategic importance to EQR, marking a deliberate step toward vertical integration. By moving downstream into ferrotungsten production, EQR will diversify its revenue base beyond concentrate sales and position itself across the broader tungsten value chain. This will allow the Company to leverage its upstream production from Mt Carbine and other future assets, while gaining exposure to more resilient pricing dynamics in the FeW market. The Company is in ongoing engagement with TMG to close out remaining due diligence items. Pictured: the TMG ferrotungsten plant located in Vietnam. Source: (www.tungstenmetalsgroup.com) For more information refer to: ASX Announcement 18th November 2024: ‘EQR to Acquire 100% Interest in Tungsten Metal Group’ ASX Announcement 14th February 2025: ‘EQR Provides Update to Ferrotungsten Producer Acquisition’ Operating and Financial Review continued 8 EQ Resources Limited Annual Report 2025
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