Notes to the Consolidated Financial Statements continued ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 36 22. SUBSEQUENT EVENTS There have been no material events subsequent to 30 June 2025 that have not previously been reported other than: ▪ The Company raising $4 million (before costs) of new capital from a well-supporting placement of 114.3 million new fully paid ordinary shares at an issue price of $0.035 per share. Refer ASX Announcement “EQ Resources Successful A$4.0 Million Placement” dated 7 July 2025. ▪ Saloro S.L.U. executing definitive transaction documents with funds managed by Oaktree Capital Management, L.P. for a US $7.5 million royalty-based funding package which grants Oaktree a 2.5% royalty. In addition, Cronimet Asia Pte Ltd executed an agreement to convert US $3 million of the initial offtake prepayment provided to Mt Carbine operations to equity at a conversion rate of $0.035 per conversion share. Refer ASX Announcement “Saloro Secures US $7.5M Royalty Funding” dated 29 July 2025 and “Saloro US $7.5 Million Royalty Completed with Supplementary Cronimet Debt to Equity Swap” dated 15 August 2025. ▪ The Company raising a further $22.5 million (before costs) of new capital from a well-supporting placement of 703.125 million new fully paid ordinary shares at an issue price of $0.032 per share. Refer ASX Announcement “EQR Announces Successful $22.5m Institutional Placement” dated 3 September 2025. ▪ The appointment of Craig Bradshaw, an experienced global tungsten industry executive, as Managing Director. Refer ASX Announcement “EQR Appoints Craig Bradshaw as Managing Director” dated 18 September 2025. 23. STATEMENT OF CASH FLOWS Reconciliation of net cash outflow from operating activities to operating loss after income tax 2025 $ 2024 $ (a) Operating loss after income tax (39,307,079) (27,723,114) Depreciation and amortisation 12,037,307 6,631,044 Share based payments expense 3,735,807 3,539,925 Amortised finance expense 486,198 1,838,451 Loss on disposal of assets 940,986 (2,718) Impairment of capitalised exploration and evaluation assets 1,204,830 - Revaluation of investment to market value - (23,442,638) Unrealised foreign exchange (gains) losses (452,094) (219,651) R&D tax offset capitalisation - 24,462 Change in assets and liabilities: Decrease (Increase) in receivables 2,096,582 (7,067,497) Decrease (Increase) in other assets (15,370,610) 2,313,396 Increase/(decrease) in trade and other creditors 17,711,384 31,404,786 Net cash outflow from operating activities (16,916,689) (12,703,554) (b) For the Statement of Cash Flows, cash includes cash on hand at the bank, deposits, and bills used as part of the Company’s cash management function. In addition to these funds the Company had $931,529 in unused credit facilities as at 30 June 2025 (2024: $575,032) The balance at 30 June comprised: Cash assets 1,874,492 3,489,532 Cash on hand 1,874,492 3,489,532 102 EQ Resources Limited Annual Report 2025
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