Focus : Saloro Turnaround Success Story - Rapid Transition to Cash Positivity In mid-January 2024, EQR assumed full management of the Saloro tungsten operations in Spain, marking a significant milestone in the Company’s European growth strategy. From the outset, the transition was structured around a comprehensive metallurgical and operational assessment, designed to identify immediate efficiency gains and longer-term performance improvements. By February and March 2024 (last financial year), EQR implemented a series of targeted optimisation measures—“quick wins” that delivered early positive impacts, particularly in recovery performance and plant efficiency. These initiatives provided the foundation for broader upgrades that followed in Q4 FY2024, when major modifications to the production plant were successfully executed. Importantly, these upgrades were carried out without major interruptions to operations, ensuring a seamless transition for the workforce and maintaining steady output during the changeover. In the first half of FY2025, all planned modifications were systematically completed, with results evident in both improved tungsten recovery rates and increased production volumes. Key enhancements included: − Deployment of XRT Ore Sorting technology, enabling more precise ore characterisation and feed quality control; − Commissioning of a fines recovery circuit, improving material separation efficiency and significantly reducing tungsten losses to tailings; and − Workforce development through structured training programs, embedding continuous improvement and technical upskilling. These measures quickly translated into operational and financial success. By the close of Q2 FY2025 and Q3 FY2025, Saloro delivered a record unaudited EBITDA of A$7.8 million, a clear demonstration of the effectiveness of EQR’s intervention strategy. Notably, the operation achieved cash-positive status within nine months of acquisition, reinforcing the Company’s ability to extract value through disciplined operational oversight, targeted investment, and strong local engagement. Saloro now stands as a model of EQR’s capability to revitalise and optimise critical mineral operations, positioning the asset as both a cornerstone of the Company’s European platform and a key contributor to EQR’s consolidated financial strength heading into FY2026. EQ Resources Limited Annual Report 2025 9
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