Material Business Risks The Board is committed to the proactive identification, assessment, and management of risk across all areas of EQ Resources’ business activities. The Company’s Risk Management Policy recognises risk management as a cornerstone of good corporate governance and fundamental to achieving both strategic and operational objectives. Effective risk oversight not only mitigates material exposures but also enhances decision-making, identifies opportunities, and underpins the preservation and creation of security holder value. The Board reviews the Company’s risk management framework at least annually, ensuring its continued relevance and effectiveness. Management reports identified risks through regular operational reporting and, where necessary, through direct and timely communication to the Board. The Company does not currently maintain a dedicated internal audit function; however, oversight is supported through the Audit and Risk Committee, which has ongoing responsibility for monitoring risk management practices and financial compliance. During the reporting period, management confirmed to the Board that the Company’s systems of risk management, internal compliance, and control remain sound and effective in all material respects. The CEO and CFO jointly attested that the Financial Statements are underpinned by a robust system of internal control, and that the Company’s risk management framework, particularly as it relates to financial risk, has operated effectively throughout the year. While the Company faces risks inherent to the resources sector — including economic, financial, and operational risks that may influence short-, medium-, or long-term outcomes — the Board does not consider EQ Resources to be materially exposed to environmental or social sustainability risks at this stage. Policies and procedures continue to be refined and updated to address emerging challenges and evolving regulatory expectations. Through its governance framework and oversight processes, EQ Resources maintains a disciplined and structured approach to risk, ensuring resilience in operations while remaining focused on delivering sustainable growth and long-term value to its stakeholders. Operating and Financial Review continued 14 EQ Resources Limited Annual Report 2025
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