ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 37 24. CONTRACT LIABILITIES 2025 $ 2024 $ Contract Liability - Sublease1 Current - 1,466,669 Non-current - - - 1,466,669 Contract Liability - Offtake2 Balance at the beginning of the year 4,906,401 4,901,961 Offtake secured during the year 3,219,545 - 50% recognition upon JV acquisition 4,906,400 - Unrealised foreign exchange (gain) / loss 110,863 4,440 13,143,209 4,906,401 1 Mt Carbine Sublease Rent prepaid to Mt Carbine Quarries Pty Ltd as per the Retreatment Operations Sublease Agreement between Mt Carbine Quarries Pty Ltd, Cronimet Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd. Upon acquisition of Cronimet Australia’s 50% portion of the Mt Carbine Tungsten Joint Venture Operations this amount is now eliminated upon consolidation. 2 The initial offtake advance is denominated in USD and the Offtake Advance Agreement between Cronimet Asia Pte Ltd and Mt Carbine Retreatment Pty Ltd governs the terms and repayment of this advance. A further offtake prepayment facility of US $2,108,802 was secured from the Company’s offtake partner, Cronimet Asia Pte Ltd, This offtake advance is denominated in USD and the Supply & Purchase Agreement between Cronimet Asia Pte Ltd and EQ Resources Limited governs the terms and repayment of this advance. The contract liability arrangements for the Offtake Advance are secured as follows: ▪ general security deed from Mt Carbine Retreatment Pty Ltd over its present and subsequent acquired assets; ▪ general security deed from Cronimet Australia Pty Ltd over all its present and subsequent acquired assets; and ▪ mortgage from Mt Carbine Quarries Pty Ltd over mining leases ML4867 and ML4919. This mortgage also includes an interest over “Featherweight Property”, which is all other property of Mt Carbine Quarries Pty Ltd other than the mining leases. The mortgage is limited recourse in that it is limited to the value of the mining leases. 25. BORROWINGS 2025 $ 2024 $ Unsecured borrowing at amortised cost Loan from related parties 8,735,500 1,798,570 8,735,500 1,798,570 Secured borrowing at amortised cost Bank loans 35,803,796 40,348,612 Bank loans – undrawn (931,528) (572,450) Bank loans – capitalised interest - 450,742 34,872,268 40,226,904 Current 43,607,768 42,025,474 Principal features of the Group’s borrowing are as follows: (a) The Group has 4 principal bank loans: ▪ A loan of $14,321,519 (€8,000,000) was taken out on 31 March 2021, comprising interest-only payments at a rate of 3.45%. The loan is due for renewal on 10 December 2025 and is secured by a letter of credit from Oaktree Capital Management L.P. As at reporting date $13,856,790 (€7,740,403) of the loan was drawn. EQ Resources Limited Annual Report 2025 103
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