Notes to the Consolidated Financial Statements continued ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 38 ▪ A loan of $6,265,664 (€3,500,000 ) was taken out on 1 October 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 $6,260,331 (€3,497,021) of the loan was drawn. ▪ A loan of $6,265,664 (€3,500,000) was taken out on 31 January 2022, 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 $6,260,090 (€4,745,338) of the loan was drawn. ▪ A loan of $8,950,949 (€5,000,00) was taken out on 7 September 2022, comprising interest-only payments at a rate of 3.51%. The loan is due for renewal on 2 January 2026 and is secured by a letter of credit from Oaktree Capital Management L.P. As at reporting date $8,495,055 (€4,903,179) of the loan was drawn. During the reporting period the Group repaid one of Saloro’s debt facilities in the amount of €5 million. ▪ The recognition of the advanced upfront Subscription Security payment of $8,735,000 from OCM Luxembourg Tungsten Holdings S.a.r.l. (Oaktree), as short-term borrowings, prior to the issue of the Subscription Securities as part of the share placement on 22 May 2025. The loan is non-interest bearing unless the Company fails to satisfy the Subscription Approval by 31 August 2025, interest will accrue at a rate of 10% per year accruing daily. At the EGM held on 19 July 2025 shareholders approved the issue of 249,585,714 shares in full satisfaction of the short-term borrowings. 26. OTHER FINANCIAL LIABILITIES 2025 $ 2024 $ Financial liabilities carried at fair value through profit or loss:1 Current 2,467,160 1,245,147 Non-current 9,653,602 10,538,413 12,120,762 11,783,560 Deferred interest:2 Current 101,321 49,665 Non-current 320,851 281,436 422,172 331,101 Total Financial Liabilities 12,542,934 12,114,661 1 A discounted cash flow method using a discount rate of 5.455% (2021: n/a) was used to capture the net present value of the revenues for the life of mine as determined in the May 2023 Update of the BFS. 2 Deferred interest relates to that portion of the Regal Resources Royalties Fund where actual payments did not satisfy the interest component due to the staged ramp-up of Open Cut operations. These costs will be amortised over the period in which the first stage royalty of $10 million is scheduled to be repaid. The Company entered into a Royalty Funding Package with Regal Resources Royalties Fund with the Group receiving $10 million in two separate tranches. The financing consists of a royalty percentage of 3% with a buy-back option after the recovery of the first stage royalty, $10 million (and before the 7 anniversary of the definitive agreement execution) and a payment of $2.75 million, reducing the liability to 1.5% for the life of mine. 27. LEASES Movements in the Group’s lease liabilities during the year are as follows: 104 EQ Resources Limited Annual Report 2025
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